Wednesday, March 14, 2012

The Daily Note - AAPL Too Big to Fail?

Is AAPL becoming too big to fail? With all the institutions betting on this monster to make it or break it for them in their portfolios the question becomes legitimate.

AAPL is an icon/cult and very real. It became an icon and cult because it was carefully crafted way back in the early 1990's (remember those years?) when AAPL became the computer in schools? A really great plan and maneuver by Steve Jobs. He could sell ice on the North Pole and not fail once he established the presence of Macs in the classroom.

Many students who knew nothing about computers learned on a Mac. Many teachers did the same and PCs became strange if learned at all by any of them growing up throughout the 90's. Add 10 years and you have many who understand nothing else and many more who want nothing else. I don't mean Macs, but AAPL. Mr. Jobs was thanked in many schools by many teachers, the name stuck.

Of course, it wasn't really the Mac but the iPod that drove AAPL to gain attention, and who better than the youth, who drive the music business and the ones already familiar with the name AAPL. Napster was a very significant signal for the desire, AAPL capitalized on that with iTunes/ iPod and then integrated with the iPhone. Add to that the growth of China and the cost of AAPL products there. Far more expensive than here, just ask a Chinese student in America.

Institutions are compelled to hold the top stocks in their portfolios to compete, and AAPL is chief among them. Competition is fierce now for client dollars as individuals are reluctant to invest since 2007. So it is important to note a "Catch22" as one feeds on the other, and followers of AAPL only grow, and grow up.

Where Would I Be Now by Joe Cocker on Grooveshark

Happy Trading, Living and Dancing
to the AAPL tune

The Daily Pick - AAPL

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