Now let me open your eyes so you can see...
First, you have to look at who was on the committee. Al Gore, who is 100% Democrat and 100% Anti-Bush.
http://www.newsmeat.com/billionaire_political_donations/Steve_Jobs.php
http://quote.bloomberg.com/apps/news?pid=10000103&sid=aIzb2nc.YIIE
http://www.google.com/search?hl=en&q=steve+jobs+democratic+contributions
As you can see, Steve Jobs is 100% Democrat as well. Al Gore isnt going to let the investigation demonstrate that Steve Jobs was implicated in this mess.
What are the chances that the committee is going to come out and say that Steve was guilty knowing that he helped Al with his Presidential campaign and contributes greatly to the Democrats? The Clinton administration was very sketchy and Al was the COO of the enterprise. Whether Steve was guilty or not, Al wasnt going to let his buddy down even if he had to lie or stretch the truth.
Second, institutions automatically sell shares during a negative event. Usually the selling off is way overdone. In this case, junior traders were staffing the desks and they let the selling become overdone.
There was no question in my mind that the committee would come out and exonerate Steve Jobs and, of course, the market reaction would be positive. I could not picture Al Gore letting Steve Jobs down. Al was hand in hand with Steve during the 2000 campaign. No way that would ever happen.
However, there will be more to come next week. I wouldnt hold Apple shares past this weekend.
Actually, the truth of the matter is that Steve is under investigation with the SEC and its ongoing. That is a fact. However, the SEC will probably not continue with the investigation seeing that Bush will be out of office in the future and the Congress is dominated by Democrats who would dog the SEC if their hero Steve Jobs was implicated.
That is not a certainty that I am willing to bet any money on however. I still believe that we are entering into a different period where attention will be turned away from Apple. Apple's stock went from the 80s to the 50s last year from January to the summer time and partly caused by Bernanke and multiple contraction. What if Bernanke comes out and hikes the rates or never cuts them which is widely suspected? Then multiples will contract and so will Apple.
I didnt have to do much investigation to reach this conclusion. I simply remembered Steve and Al holding hands during the 2000 campaign. Two buddies, friends for life and Democrat to the very end.
Quote from fletch2:
I don't see how. All it would have taken was a news item saying Jobs was in fact under investigation for wrongdoing (which seemed possible based on earlier reports) and it would have sold off many more % points. Unless you had some kind of inside information that this was not the case, I don't see how this trade was obvious at all.
Fletch