Share prices at Triumph Industries, the parent company of Apple New Zealand distributor CED, have been falling in line with Apple's US prices.
Triumph shares have gone from a 1995 high of $1.51 to a low during June of $0.83 and, and has since been hovering in the 90 to 99 cents range.
Triumph Group chief financial officer Peter Arnott attributes the local fall to an anomaly caused by Triumph's recent rights issue, although his analysis is disputed by one investment analyst Computerworld spoke to.
Each shareholder was offered the right to buy shares at 80 cents on a one for five ratio--that is, shareholders were offered one share at 80 cents for every five shares they held.
Arnott says nearly 4 million shares were added this way to the approximately 20 million shares already on issue and Triumph was looking to raise $3.2 million, most of which went to buy Brimaur.
He says buyers who had taken advantage of the one-for-five issue told their brokers to sell to make a profit on them, "no matter how small". The process caused a dip in Triumph's shares.
The analyst Computerworld spoke to said he did not expect brokers would be recommending to their clients that shares be sold unless they believed the fundamentals were wrong. He did not dispute, however, that some would be selling to "make a quick buck".
Arnott says Apple's decline in the United States has had little impact locally.
"Triumph Industries is not perceived as just an Apple distributor--we also sell productd from HP, Microsoft, et cetera."
Triumph is now buying Auckland's Epsom MGC Systems. The purchase price is believed to be around $600,000 cash with an additional $150,000 to be paid if some objectives are reached within a year. Purchase details are expected to be finalised at the end of this month.