Shares of Apple Computer fall 5% in pre-market trading

Shares of Apple Computer Inc. fell more than 5 percent in pre-market trading following a report by The Recorder on legal news Web site that federal prosecutors are looking closely at “apparently falsified” stock option documents at the computer maker.

AAPL shares are trading down 5% at $77.44 in early electronic trading before the opening bell, down from a close of $81.51 on the Nasdaq on Thursday.

MacDailyNews Take: For those who see this as found money, ’tis a Happy New Year, indeed!

Related articles:
Faked documents may be at core of Apple options probe; Jobs seeks outside legal representation – December 26, 2006
Apple delays filing annual report due to ongoing stock options investigation – December 15, 2006
Options scandal: is Apple’s Steve Jobs truly safe? – October 18, 2006
Apple Computer Directors may have had conflicts of interest in options investigation – October 11, 2006
Apple’s options disclosures leave plenty of unanswered questions – October 09, 2006
Apple shareholders await earnings restatements; Steve Jobs still not in the clear – October 06, 2006
Former CFO Anderson helped turn Apple Computer around – October 05, 2006
Wall Street unshaken by results of Apple stock options investigation – October 05, 2006
Is Apple rotten at the core? – October 05, 2006
Analyst: Anderson, Heinen may be former Apple executives responsible for irregular options grants – October 05, 2006
Analyst: Apple restatement due to options irregularities not expected to be significant – October 04, 2006
Apple’s special committee reports findings of stock option investigation – October 04, 2006
Google CEO declines Apple automatic stock option grant; plans to buy 10,000 AAPL shares instead – September 01, 2006
Google CEO Dr. Eric Schmidt joins Apple’s Board of Directors – August 29, 2006
Shareholders allege Apple execs reaped ‘millions’ in unlawful profits – August 23, 2006
How options-backdating irregularities can affect your Apple Computer stock – August 23, 2006
Apple’s options imbroglio: Mac-maker granted options at or near key events in company’s history – August 18, 2006
Apple added to Nasdaq’s list of ‘delinquent companies’ – August 18, 2006
Apple unlikely to be delisted by NASDAQ – August 16, 2006
Apple CEO Steve Jobs drawn into stock options scandal – August 15, 2006
Apple announces update regarding stock option grants – August 11, 2006
As expected, Apple delays quarterly results due to stock-options grants review – August 11, 2006
Some stock options grant decisions were made by Apple board, and potentially, CEO Steve Jobs – August 10, 2006
Disney: no material impact from Pixar options – August 09, 2006
Pixar options draw scrutiny – August 08, 2006
Apple stock options scandal? What scandal? – August 07, 2006
Class action lawsuit over stock options filed against Apple Computer, Inc. – August 04, 2006
Wall Street forgiving of Apple’s stock option irregularities; CEO Jobs unlikely to be terminated – August 04, 2006
Apple’s stock option irregularities escalate into a scandal as world awaits Steve Jobs’ WWDC keynote – August 04, 2006
Apple warns of profit restatement dating back to 2002 – August 04, 2006
Apple loses 3.5% to $67.15 in premarket trading – August 04, 2006
Apple announces update regarding stock option grants – August 03, 2006
Shareholder’s options suit against Apple alleges ‘striking pattern that could not have been chance’ – July 11, 2006
Apple announces update regarding stock option grants – July 05, 2006
UBS: stock options probe unlikely to hurt Apple – June 30, 2006
Apple joins growing list of companies entangled in stock option ‘irregularities’ – June 29, 2006
Apple to investigate stock option grant ‘irregularities’ made between 1997 and 2001 – June 29, 2006


  1. @Tom Strong

    “Just because you like Apple products is a stupid reason to buy its stock.”

    Really?? I’d have thought just the opposite. If you like a product, then it speaks to you and therefore the manufacturer is doing something right. If it speaks to you, it’s likely to speak to others like you. So unless you’re a totally psychotic sociopath, that would seem to bode well for success.

  2. Such venom. Holiday’s over, I guess. Back to the normal brutishness.

    Invest in what you know, but don’t invest out of some sort of romantic bond, unless you don’t care whether you win or lose your money. If you know better, do better. I know many investors don’t seem to be schooled at investing at all.

    Tom, you’re right. But for a lot of people, I bet they don’t know where else to look.

  3. Tom Strong and MacPinche:

    I used to think “buying a well-run company that makes good products and leads their market category” was the way to go. But lately I’ve begun to realize that when you buy shares, you’re not really buying the company, you’re buying the Market’s OPINION of the company.

    There are lots of great companies whose price doesn’t necesarily reflect their performance. Ebay and Amazon are revolutionary companies whose price is undervalued, IMAO. Google was a freight train right out of the box, and though it bobs up and down, has stayed sky high, especially in the absence of stock splits. Apple has done well (I’ve owned their stock for over ten years), but seems to have support in the Market that’s a mile wide and an inch deep. (Watch what happens to their price on the slightest bit of negative news.)

  4. Ha Ha Ha!

    All you mac people thinking a new video pod is going to drive Apple shares over $120.


    The only big news in San Fran will be Steve Jobs delivering his keynote from jail.

    MDN keyword: reality, how appropriate, couldn’t have put it better myself

  5. PC boy: maybe not just new video ipod…but:

    • iPhones
    • iTV
    • only computers that can run any OS.
    • A Booming Brick and Mortor Retail Solution
    • Most advanced OS with new one on the way
    • Adobe soon to be Universal
    • only company that ‘gets’ design and applies it to all areas of the company product + marketing + service (not that you would know anything about that)

  6. You probably shouldn’t buy what you love, but in the case of Apple, it’s not just someone not liking the taste of Coke or Pepsi. The people that love it will continue to buy Apple computers, at least for a long while, even if the CEO is different. I’m sure there is a plan, that Steve thought of, that will be a JIC (Just In Case) plan on who will be CEO if he has to serve jail time. I don’t think he will leave because Apple learned their lesson on making him leave before. He will only leave for prison and I don’t think that he will have jail time. Any financial loss for the company will be covered by their $10 billion in cash. Steve will not leave and he will not be forced out. I would use this as a time to buy. The markets seem to have short term memory loss, and with MacWorld Expo right around the corner, it will probably jump right back up to where it was.

    People will buy iPod’s no matter what happens. At least for the long term. It’s too integrated into too many things to just disappear over night. Car’s are coming with docks in them; you can buy anything to attach to it; who knows what else is developed but not out yet.

    People will continue to buy their computers, because they seem to run Windows better than any other PC; and don’t forget that they also run the (in my opinion and most people that have tried it) better OS X which has an update around the corner.

    2007 will be interesting and exciting to watch unfold. Especially for Apple.

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