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Dramatic 48-Hour Shift in Apple Sentiment

NEW YORK ( TheStreet) -- Six months ago, as we forecast a second-half 2013 Apple (AAPL - Get Report) run, it was mentioned that leg two of the rally would depend on the headlines. If headlines in the aftermath of the Sept. 10 event suggest Apple innovation is back, then the stock would be in position to run from $500 to $600. I must say that since the stock dipped below $450 on Tuesday, this 48-hour shift in sentiment has been shock and awe.

Based on the extremely favorable iPhone 5S reviews from a variety of outlets from Wall Street Journal and USA Today, to CNET, TechCrunch and, of course, Jim Dalrymple and John Gruber, to name a few, it is now expected that there will be lines and shortages for the 5S over the coming weeks and months.

The M7 coprocessor is a hit. The fingerprint Touch ID is so solid and proprietary that not even Samsung is likely to get away with a copycat version.

The first leg of Apple's run from $400 to $500 was a run defined by big-money intelligence in the midst of a doubting consensus. This second leg will be different. The masses will be on board. As of Wednesday, they already are.

Look no further than the cover of BusinessWeek to see what I mean. Tim Cook is being hailed as the backbone of Cupertino. As the smartest guy in the room, he has withstood the absurd and unprecedented barrage from analysts and critics to turn Apple into a clone of its lesser competitors.

You don't hear analysts clamoring for Porsche to make a mass-market vehicle or for Tiffany to sell cubic zirconia. Apple generates more profit per quarter than Amazon (AMZN) has made in its entire existence and yet Jeff Bezos is the anointed one?

Bezos is nothing more than a Wall Street magician who understands how to play forward-looking investors like puppets. The management team of CEO Cook, Senior VP, Design Jonathan Ive and Senior VP, Software Engineering Craig Federighi is the real deal.

The substance of Apple as measured in pricing power and profit remains unmatched. Cook's decision to release a high-margin iPhone 5C that is easier to manufacture than the 5S means that Apple now has a backup product to help fill a global supply chain that will be begging for iPhones between now and the end of the Chinese New Year.
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