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Steven Jobs, what a job!

August 25, 2011

This posting is for those of you who love the man, for those who hold AAPL stocks like I do and for those of you who plan to buy their first AAPL stocks when it dips: Steven Jobs, the great genius is fading away in steps he created that kind of mimic his entrance in 1976. He cares about us enough not to abandon the Apple cart by a vanishing act. First, he appointed another genius, COO Cook, to take over operations two years ago, now Steve removes himself from CEO up to ceremonial chairman before he departs. Thank you,  Steve, you care. I wish for a miracle, please, 30 more years of Steve but it won’t happen. You will watch your Apple from above and enjoy your legacy. Steven Jobs will live forever in our hearts, minds and – our economy.

Here is what will happen to your APPL stock: Steve’s announcement came out. Trading in Apple shares will be heavier than usual on the selling side causing a drop of 3-8%. It’s all a matter of personality. High frequency trading pessimists who see the cup as half empty and worry about the future (about 10% of us – always get rid of things fast) will sell some of their Apple shares to the few Apple die-hard who will buy tomorrow without waiting for further drops (not very smart). On Steve’s death (very sad event that is coming, indeed!) Apple share’s will drop 8-20%. Now it becomes a matter of personality and economic projection. How can the company continue to thrive when the revered founding CEO is dead? It’s never going to be the same from now on! Some holders of Apple shares are motivated by mistrust and anxiety that interferes with their optimism about Apple’s future without the father. APPL shares may hover below $300. The optimists (those who own iPods, iPhones,  iMacs, Apple TV, or  iPads) start buying. The iPhone 5 is great, beats the Android, Apple’s future looks solid again. Shares hit $400, $500, even more, but….  5-10 years down the line what happened to UCLA Bruins Basketball (after John Wooden retired) may happen to Apple stocks (after Steve is gone). The creative genius coach of the UCLA Bruins was not replaceable no matter how hard the dudes in the NCAA tried (there was only one John Wooden and there is only one Steve Jobs). That’s when you sell your AAPL.  By then Zuckerberg’s Facebook is on your menu or you are waiting hungry for a future dude who is now a teenager…not the social type but the tinkerer with models of computer super-panels  for Enterprise spaceships. One saga goes and another one starts for behavioral investors like you and I who love America leading forever!

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