iPhone 4
Apple (NASDAQ:AAPL) just announced last weekend that sales of the iPhone 4 had reached 1.7 million units. The launch of the new product was staggering. Now how does the new product impact penny stocks? Stocks on the OTCBB often can do better as a whole if the broader market averages are higher. An investor who looks for hot penny stocks is more apt to speculate if his core holdings (Blue Chips, Mutual Funds etc.) are doing well. Basically higher averages on the NYSE and the NASDAQ usually bring more liquidity into micro cap stocks.
Currently, AAPL is trading about 20 points off of it’s all time high and the shares have pulled back sharply in the last few trading sessions. Many major brokerage firms have price targets on the stock that would provide massive gains if they were met. If the brokerage firms are right in their analysis, smaller stocks could benefit. As mentioned before in prior blogs, many penny stocks try to attach themselves to AAPL by announcing new Apps. There are dozens of companies that are constantly receiving revenues from larger companies like AAPL, GOOG and RIMM.
Sometimes this works and sometimes it doesn’t. Many large cap names that make parts for the iPhone 4 are also sensitive in a different way. The movement of these names is more earnings related. Going forward, keep your eye on the sales updates from AAPL. There might be a trading opportunity in a penny stock that was previously idle or even dead. Look at the gaming and social media companies in particular. Being ready is the key and if nothing develops, all you have lost is time.
iPhone-4g
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