John C. Dvorak:
I’m often asked at what point should someone short
high-flying Apple shares? My response is simple: When the
company starts closing stores and pulling back from retail,
then the tide has turned.
Not a bad metric. I too would consider a retail pull-back to be a dead canary in the Apple coal mine.
I see no reason why Apple cannot have 1,000 stores that would all
be successful. Staples Inc., the office-supply chain, has
2,000-plus stores. Apple seems so adept at retail that there is no
reason to doubt that it could go out and buy a company like
Staples to expand in the sector. Why not?
Yeah, sometimes I go into a store and get confused as to whether I’m in a Staples or Apple Store.
★ Friday, 23 December 2011