Apple bilks Wall Street banksters at $500 a pop

TOYMAKER FOR THE WELL HEELED Apple has seen its share price break the $500 barrier.

Apple, which makes toys so expensive that tsars would feel ashamed by the decadence of owning one, managed to pass that magical marker of runaway capitalism yesterday with its share price finishing the day at $502.60. Around a decade ago the firm's shares sold for close to $40, highlighting just how well Apple's marketing machine has worked to brainwash the flock.

Apple's increasing share price is not however one of the smoke and mirrors year 2000 dotcom stocks such as Lycos, there supposedly are some real financial reasons behind the $500 a share price tag.

Last month Apple announced what could only be described as a vivid illustration of the effectiveness of marketing. Revenues and profits were astronomical with sales of the firm's Iphone and Ipad doing exceedingly well, even though technologically they are well behind contemporary devices.

Apple's fanbois of course couldn't give two hoots about the technology aspect but they do like to proudly claim Apple is the world's 'biggest' company, as if they built the firm themselves, which in some ways they have. Of course its ever escalating share price means the market capitalisation - its share price multiplied by the number of shares - is increasing, but to judge a company's size by this flakey measure is laughable.

All Apple's escalating share price suggests is that Wall Street banksters expect even more fanbois to hand over ever growing wads of cash for shiny toys. Indeed, Timothy Ghriskey who owns Apple stock and works at Solaris Group bigged up his investment saying, "We think the stock has higher to go, $600 is next [...] it's still an inexpensive stock for a company that is executing at the very highest level and continues to innovate."

Apple's share price isn't based on the financials that were announced two weeks ago but rather on expectations of what the firm's financials will be like in three, six or 12 months. While Apple's share price is presently sky high, the company is not a steady blue-chip like IBM or Intel, both of which have decades of steady if unspectacular performance behind them.

Apple of course has to deliver on Wall Street's expectations otherwise its share price will fall. But given that fanbois love to claim Apple is the world's biggest company, it is likely they will do all they can to keep that share price rising, even if it means their own bank balances go in the opposite direction. µ