Today I got two, count them two email messages telling me to buy this stock.
Watch UTYW M0nday!
UNITY WIRELESS CORP Sym: UTYW
This is a REAL COMPANY, REAL EARNINGS, Making thier INVESTORS HUNDREDS OF THOUSANDS!
Current: 0.06
Expected: 0.24
First Half Revenue Grew 53% to $4.8 Million Over the Same Period in 2006
Wireless Technology is and will be the Wave of the FUTURE! This Company in on the Breaking mark of coming out with a HUGE deal Tuesday!
Keep your eyes open for big news on UTYW Monday.
I got the above one and within half an hour the second one showed up.
Lightning Could Strike Twice!
UNITY WIRELESS CORP
Sym: UTYW
This is a REAL COMPANY, REAL EARNINGS, Making thier INVESTORS HUNDREDS OF THOUSANDS!
Current: 0.06
Expected: 0.24
First Half Revenue Grew 53% to $4.8 Million Over the Same Period in 2006
Wireless Technology is and will be the Wave of the FUTURE!
This Company in on the Breaking mark of coming out with a HUGE deal Tuesday!
Grab UTYW Monday morning.
Notice how both of those emails are nearly identical? They also came from some very dubious sounding domains.
Let’s just throw caution to the wind for a minute or two and look at this amazing stock deal that has just fallen into our lap.
What the heck happened? Did I receive this amazing news several months too late? Way back in May of 2007 this stock went as high as $0.19 per share when it climbed up from $0.09 per share. When I look back through the stock news about this company I saw a few interesting tidbits from May:
Unity Wireless Completes Delivery of Second Order to Vietnam’s Largest Wireless Carrier — MobiFone
Unity Wireless Completes Introduction of the New Management Team
I also saw some information about the company delivering product to Nokia India. With all of this great news why did the stock drop in July? All the news i can find points to more and more orders coming in. Then I noticed something else. I have been seeing a rather high turn over rate among its board of directors. If the company is doing so good why is it having such trouble with the people running it?
Back on August 8, 2007 someone purchased over 1 million shares of this stock at a price of around $0.08 per share. I’m going to make an educated guess that someone is sitting on a large number of shares of this company and they want to sell them at a profit. I am also going to make a guess that there will indeed be good news coming from this company on Tuesday.
I’m going to make one final guess. Due to management problems at the company it will not gain any real benefit from the news on Tuesday.
Don’t just take my word for it, do some investigating of your own and make up your own mind.
On Wednesday September 5, 2007 Steve Jobs announced a $200 price drop on the iPhone. This is unheard of in the tech industry!
With no new version on the horizon why would Apple drop the price of its “hot” new piece of technology only two months after it was released? Why did Steve Jobs release a press release after the fact offering a $100 store credit to customers who purchased the device at full price? I have a few ideas of mine own on this but first let me show you the stock chart for the last 5 days.
Apple 5 day chart from Yahoo Finance
Investors were very happy leading up to the Apple announcements last week. News of the “fat” Nano had leaked and there were rumours about a “touch” iPod on the horizon. Everything was looking great until the price cut was announced. Once that news hit the stock began to take a serious nose dive. Trading was way up and the stock ended the day almost ten points lower than the daily high. (Daily High: 145.84, Closing Price: 136.76)
Over the course of the next few days The market reacted somewhat positively towards the rebate offer and the new products being released. Friday was the worst day so far with the stock ending the day at $131.77 per share, $14 off the high from Wednesday.
Why Steve, why?
According to a news release posted on gizmodo Apple just reached the million iPhones sold mark. Sadly, this news was released after the price drop. So, if the iPhone is selling so well (it took almost two years to sell 2 million iPods) why are they dropping the price?
It could be because of the problems:
- Buying an iPhone requires changing carriers to at&t if you are not already with them.
- For $600 you can buy a much bigger iPod (capacity) and a damn fine cell phone.
- Changing cell carriers involves an early termination fee.
- Did I mention at&t already?
You might have also seen the recent news about the iPod “Touch” that was just announced. It is an iPhone without the phone but it has wi-fi. It will only be a matter of time before someone figures out how to hack that device to use it with a bluetooth headset. You know what that means? It means you will have an “iPhone” that works with Skype! Now that will sell some hardware!
Gizmodo also touches on Apple possibly entering the wireless market in the upcoming spectrum auction. Is Apple thinking of going it alone or just using this to help push iTunes and iPod sales?
So, knowing all of this why has Apple cut the price on the iPhone when there is no second generation iPhone replacing it? How will a price drop affect future Apple products?
First off most people believe that the spike in Apple sales upon release of a new product is due to the Apple “fanboys” who buy everything the company makes. These people would pay double for “iToilet Paper” if it had an Apple logo on it. It is quite possible that all of the fanboys have purchased their iPhones and Apple saw sales declining. Knocking the price down to $400 does make sense in that now the rest of the market may give the iPhone a second look. After all it is no big secret how much the iPhone costs to produce.
What about the secondary effect of a price drop? If Apple is willing to knock a third of the price off of their device after the fanboys buy it what is to stop the fanboys from taking a “wait and see” approach to the next Apple device? If a two-month wait gets you a 33% price drop why buy anything when it comes out?
I still think the iPhone was over-hyped and that Steve Jobs is right in saying that the device was priced to high. I just think they should have came out with the lower price from the start. Dropping the price this soon after release can only be bad news for Apple. No one ever drops the price on a device because it is selling “too well”.
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