Apple below $600

Just as predicted, Apple has fallen below $600. This company is still very over valuated so it is possible soon we see prices even below $500. The price of Apple shares is just an illusion and magic, based on the legacy of Steve Jobs. In fact investors expect wonders from the company. It is irony that even after the magician is no more here, the investors are still waiting his sorcery.

The main problem is not with the iPhone 5 Maps. It is not with the managers blamed for the problems and fired for this. The problem is that Steve Jobs is no more in Apple. The importance of the leader in the business is very big. Ayn Rand has written about it very well. But today we depreciate the leader's role and over valuate the illusional value of the institution. It is a mystic structure that is fated always to make profits. So we invest in it... :)

In fact, it is not so. Without Jobs Apple is nothing. Yes they have $100 billion in cash, and they have generous markets. But they have no heart. That is the real truth.

So the Maps-problem and managers dislocation is a symptom and indication that Apple is going down from the peak of glory.  Usually in such cases all illusion value is quickly lost. Yes the magic is very good when you have a magician to keep it. But without a magician the image-bill is to be paid very fast.

So unless Apple finds a new Jobs, $500 per share is a real future...

November 1st 2012

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