AAPL Short Sellers Taking The Heat for April Sell Off
Short sellers of AAPL are feeling the heat for how relentlessly they pounded shares of Apple during the month of April.
Mal Spooner, a Canadian money manager and financial columnist, says that short interest in Apple had exploded from 8 million shares in April 2012 to 20 million in April 2013.
On Tuesday, Spooner's recent claims against AAPL short-sellers came to light on CNN. As it turns out, the respected financial guru asserts that short sellers effectively swarmed Apple stock in a manner befitting "a violent street crime where an unsuspecting innocent bystander is attacked by several culprits at once."
"I've never claimed to be all that smart," he says of the April short-selling bonanza, "but I just can't figure out how aggressively attacking a company's share price, selling stock that the seller doesn't even own, for the sole purpose of transferring the savings of innocent investors into one's own coffers... is a noble thing. Isn't it kind of like a bunch of thugs beating someone up and stealing his/her cellphone declaring it was the loner's own fault for being vulnerable?"
April was so ugly for Apple that near the month's conclusion, 48 hours before the company's Q2 2013 earnings report, in fact, Apple's share price plummeted to $385.10, which was the lowest price AAPL had seen since 2011.
So is the worst over for Apple's alleged abuse at the hands of short-sellers? According to today's report, by May 15, Apple's short interest had fallen precipitously, meaning that fewer traders are now betting on continued selling pressure.