So Apple (NASDAQ:AAPL) finally decides to respond to a rumor. Maybe Steve Jobs did read Friday's article. Bloomberg is reporting that Apple spokesman Colin Smith refuted the weekend rumor that suggested the delay time on the 27-inch Mac desktop was caused by a malfunctioning screen. Instead he cited the popularity of the product, “The new iMac has been a huge hit and we are working hard to fulfill orders as quickly as possible. We apologize for any inconvenience or delay in delivery this may cause our customers.” (Bloomberg)
This came on the same day that the Wall Street Journal, the NY Times, and CNBC were each obsessing over yet another attempt by Google to release a relevant phone. While these outlets were busy gossiping like a group of teenage girls, most people missed the only factual tech investment story of the day. NPD reported that desktop Mac sales are up 74 percent in the first two months of the quarter. Now that’s a story worth reporting.
The abundant news that is available on the Web makes is so difficult for investors to discern which news items are worthy of your attention and which are meaningless. Monday was a prime example of the major news outlets leading you astray. Where have we heard these Apple attacks before? They tried it with the Zune and that thing bombed, then they tried it with gPhone #1 and that thing bombed, then with the Droid and that thing bombed, now they're giving it another go around?
The interesting thing is that this kind of news originates from sources 'familiar with the situation' or hedge funds. There is nothing these funds would like more than to be able to buy Apple in the $180s during the first week of January. With the earnings report expected to clobber estimates and the Tablet set to arrive in early 2010 the next run might be a $40 run. This hedge fund game was working as usual until surprisingly an Apple spokesman actually spoke up and defended the company.
At www.economictiming.com we feel that providing investors with focused information is one of our primary responsibilities. Of all the news that is out there, 99 percent of it will fool you into making bad investment decisions. Make sure you have access to a professional filter of the news flow. Especially when investing in a company like Apple that deals with daily rumors.
Disclosure: Long AAPL