Thursday, November 8, 2012

Apple Inc. (NASDAQ:AAPL) Off 20% From peak, Dynegy (DYN) posts narrower 3Q loss

The shares of Apple Inc.(NASDAQ:AAPL) fell along with many other stocks in yesterday’s selloff in the market.

The stock had touched an all time high of $705.07 the day the iPhone 5 was available for sale.  It has fallen 20 percent since then.

This is happening at a time when the Cupertino based company is preparing newly launched products like the iPad Mini for sale.  It has already warned that the cost of manufacturing these high tech gadgets will affect profits.

The market capitalization of the world’s most valuable company is now $548 billion.  Exxon Mobil, the oil company follows with $418 billion.

The stock dipped 3.8 percent to $558 in yesterday’s fall which saw the Nasdaq composite index dropping 2.5 percent.

Dynegy Inc.(NYSE:DYN) has reported its results for the third quarter.  The growth in the gas business has made up for the fall in the coal segment, thereby reducing loss.

Dynegy produces power which it sells through the wholesale market.  Low electricity prices have been affecting the company’s performance.

For this quarter, the power producer made a loss of $41 million, significantly lower than the negative earnings of $129 million it had earned in the same period last year.  The earnings per share were not released this quarter but will be announced from the fourth quarter onwards, because of fresh start accounting.  The company had come out from bankruptcy protection only in October.

The operating income of the gas business was $52 million, compared to $28 million last year.  On the other hand, the coals segment incurred an operating loss of $53 million compared to the income of $12 million it earned in the prior year period.

While many of Dynegy’s subsidiaries had filed for bankruptcy in November last year, the parent had done so in July, later merging with one of its subsidiaries.

The stock dropped 44 cents or 2.4 percent to $18.

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