BAM Investor has rattled Wall Street cages by releasing a prediction of a $45 Apple stock price as of 3rd quarter 2010, latest 1st quarter 2011. Ha! Poppycock and nonsense. Apple as of June 23 end of day is at $270 and the cash and equivalents alone is north of $27/share. Who do these BAM “geniuses” think they are?
Glad you asked.
BAM Investor is the brainchild of JG Savoldi who has taken technical analysis into the behavioral domain using Behavior Analysis Models based on historical patterns of human trading and reactions to risk to predict/forecast Black Swan events – precipitous changes in prices. Apple at $45 certainly qualifies for precipitous.
Here is what BAM Investor says about its modeling:
The “guts” of the model are based on proprietary computations, the components of which include elements of—but are not exclusive to—the Fibonacci sequence and its golden ratio, fractal studies, and several unique capitulation thresholds. The B.A. model is equally effective in its ability to predict price movement whether the data input involves an individual stock, stock indexes, sector funds, currencies or commodities and can be used to trade or invest in any time period—intraday, intermediate, or long term.
As a rule, B.A. can be used to generate information about future price movement in any market as long as the primary traders in that market are human beings.
Now what makes BAM Investor of interest is who uses BAM for its financial radar. As it turns out a number of Wall Street Hedge Funds listen to BAM Investor… and the past track record for prediction is not completely out to lunch. But what is even more intriguing is a singular fact – There is a swell of contrarian opinion that a serious double dip recession is tripping towards reality very soon – before end of July. Is BAM’s forecast really a front runner for a broader “thumbs down” on the US/World Economy as a whole? A Short time will tell.