Follow Apple’s Suppliers

Bloomberg’s Tim Culpan has an interesting bull take on iPhone sales — their two major Taiwanese suppliers, Hon Hai and Pegatron, took their stock hits months ago and have now leveled off:

The short-interest chart hints at what’s really going on. Bearishness on stocks of both suppliers peaked in January and February, with the 159 million shorted shares of Hon Hai on Feb. 16 being the highest in at least five years. […]

A wise investor would avoid making decisions based only on such correlations. But it’s worth at least asking why the companies that rely the most on Apple seem nonplussed by the bad news out of Cupertino.

(That’s the modern informal nonplussed, of course.)

★ Tuesday, 3 May 2016