“Apple dropped 10% in pre-open trade after reporting a softer-than-forecast fiscal fourth-quarter earnings outlook. Apple’s third-quarter earnings climbed 31% on growing sales of Macintosh computers and iPod music players,” Steve Goldstein reports for MarketWatch.
“Deutsche Bank analysts said concerns over CEO Steve Jobs’ health is playing as much a role in investor concerns as the group’s earnings view. Apple said Jobs has no plans to leave the company and that his health is a private matter,” Goldstein reports.
“‘While the topic is delicate, we believe the absence of a straightforward denial of health issues will increase speculation of a worst-case scenario,’ they said,” Goldstein reports.
Full article here.
In a healthier market, you wouldn’t see as much of these shenanigans happening with Apple (AAPL) right now, but people are worried, so AAPL is extra valuable to Wall Street right now.
Apple is an extremely strong company; a bright spot amidst a market full of uncertainty. But, a steady rise in share price as reward for producing stellar quarter after stellar quarter isn’t the optimal situation for a go-to Wall Street cash machine. If peaks and valleys can be made to occur in AAPL with some regularity, then profits can still be made during a rough market.
Money managers can see that Apple’s future is extremely bright, even — *gasp* without Jobs (may it never happen) — so, if AAPL can be manipulated downward, they have confidence that it will soon bob right back up. Just skim off the profits, wait for it to pop up again, and then once again grow oh-so-concerned about Apple’s guidance (which is always ultra-conservative), make up something else entirely to be “worried” about, or even stoop (scumbags that they are) to using Jobs’ past health history as a tool. Just call your favorite ignorant, friendly, and/or paid off “reporters” to get the story out there, scare off the skittish, and reap the rewards. Lather, rinse, and repeat. Oh, yeah, we almost forgot: accuse anyone who questions why a company that repeatedly posts record earnings inexplicably loses 10-percent of its value in a couple of hours every so often of being a crackpot conspiracy theorist.
It’s unfortunate that the SEC can’t even begin to get a handle on this painfully obvious market manipulation.
buyingOpportunity=(AAPL<=149);
MDN – Still to Fanboy rumor blogging. Your “take” shows you know less than zero about investing…
MDN Did you mean “vulnerable” to wall street?
SK – not
I’m surprised with apple’s announcement of a “product transition” that the stock hasn’t become more excited. Apple usually doesn’t discuss such transitions if they are not significant.
No Company is tied to a single man, not even Apple. Everyone forgets the makeover he’s done on the mgt team, and importantly, all the senior guys have been there for a while. Look at other CEO star managed companies, (GE ANYONE), and take a look at how their senior mgt ranks have turned over and over. I’m supremely confident that Steve has amassed a Company (more than just mgt team) that will drive on innovation for at least another decade with or without steve.
Apple is a public company, which makes Steve’s health a public matter.
I would be saddened to see Steve leave for health reasons, but I think AAPL is a mature company now. It’s no longer being run by sugar-water CEOs. While not everyone can be the visionary that Steve is, there are definitely others in the industry that get it, and most of them work at Apple.
MDN hit it right on the head – as a former hedge fund manager i can tell you this is exactly what is going on. SK you are clearly a novice. Granted, the margin guidance is going to create some concern with some analysts, but any analyst that has followed the company knows the Apple has been referring to its previous margins as unsustainable and driven by favorable component pricing in past quarters. The street also knows that as you gain market share you need to reduce margins slightly – in a bull market this would already be factored in . . . . . Steve Jobs “health” is a non-issue is obviously driven by hedge funds … no new news or appearances drove this “story” – only a hit piece in the New York Post yesterday.
Excuses, excuses, shady investors use similar tactics to manipulate oil.
Is there any other company in the world, where investors are concerned about CEO’s health?
OMG, this is going to be end of the world! I guess Mayans were right that it will happen around 2012.
I dont get it with these stock manipulators, Steves health is truly a private matter. Steve is the CEO, the Apple Coach…. I would be a lot more worried if Joni Ives was no longer with Apple.
SK,
Au contraire. Don’t like seeing the truth in print, huh?
MDN nailed it.
“I would be a lot more worried if Joni Ives was no longer with Apple.”
Yes, both of him.
Well there’s something we can always go to the bank on when it comes to Wall Street: Being fickle.
At 5:00 pm ET they pushed AAPL down $10 to $156.25 before a word was spoken.
http://tinyurl.com/6qp638
So the big boys had it in for Apple long before they heard or saw anything!
@SK:
I am disinclined to acquiesce to your comment concerning MDN’s take. Put it another way, why are analysts not worried about Steve Ballmer’s bulging waist line. Every year, it seems like its expanding. Yet, no analysts makes any statement concerning that fact.
Let’s take it even further. Take any Fortune 500 CEO. When was the last time any analyst said anything about the health of the CEO (Apple not included). No one is saying anything about Rob Glazer. I mean, for god’s sake. He is a poster boy for dunkin donuts.
Love it when MDN goes Warren Buffet on their readers. It’s totally ignorant to dismiss concerns about Jobs’ heath. Might there be some manipulation? Maybe. But, you can be no more certain about that than you are about Jobs’ long term health picture. I agree that Apple has a bright future but just like his health and potential market manipulation, you have no idea of his true impact on products because he wants it that way. I’m not selling my investment in Apple that dates to 1998 but I am concerned about the company’s longer terms prospects without their founder and leader.
silverwarloc:
Nice logic: Steve Jobs = Steve Ballmer = Rob Glazer
The latter two could both die in a plane crash and the long term prospects of both their companies would not change an iota. Case in point: look at Ms and Real stock performance for the last five years.
This new product transition might just be a virtual holo of Steve himself…Problem solved. Forever……
“@SK:
I am disinclined to acquiesce to your comment concerning MDN’s take. “
I’m sure you don’t beleive a word I say. That’s why you will never own a share of stock, work the 3-11 shift at McDonald’s, and get your “News” from a Rumor Blog…
The Institutions who pour hundreds of millions of dollars in Apple hae no right to know about the health of the CEO, That’s a private matter…. And how dare they lose confidence when the COO and CFO just informed investors that they are predicting a lousy 4th quarter.. Yeah, it’s all a big conspiracy…
You guys really know nothing of business….. Stick with the deep frier kid…
“Lather, rinse, and repeat.”
Those scumbags never bother to wash their dirty hands.
So “MDN nailed it”, huh?
MDN’s “take” is nothing but speculation.
Where’s the proof? Where’s the *hard* evidence? Why doesn’t MDN (or anybody else claiming manipulation) offer *any* evidence at all that AAPL is being manipulated in this specific case and instance?
Here’s an easy rebuttal to the “rinse, lather, repeat” point: On Wall Street, any arbitrage advantage tends to rapidly dissipate, simply because the rest of the market becomes aware of the overreactions and adjusts and responds to it. So if AAPL were being manipulated as blatantly and predictably as MDN claims, then quite frankly, after 12 quarters of this pattern continuing, those evil hedge funds would have to be mad to try it, because they would quickly get their clocks cleaned by other market players.
That’s why it’s important to have specific evidence in specific instances to back up any allegations of manipulation. Where is this evidence?!?
Sure, it’s easy to call for an SEC investigation and have them do all the work for you.
And it’s even easier to convince yourself that you know the “truth”, when your explanation conveniently scapegoats and shifts the blame elsewhere.
If you continue to believe that AAPL is being manipulated — without having any evidence to back it up — here’s a hint of how you will end up coming across to the rest of the market: Patrick Byrne. If you haven’t heard of him, Google him and count the number of times he’s attacked the evil short sellers for damaging his company’s stock. The market — and the SEC — long ago stopped paying any attention to his rabid nonsense, because he could not produce a single shred of evidence.
Bottom line: If you’re so convinced that the evil hedge fund managers are really and truly manipulating AAPL, then put your money where your mouth is and squeeze those evil hedge fund managers. Buy the stock. Buy some options. And commit to hold on to it for a minimum timeframe of your choosing — and then stick to that timeframe.
Go to any nearby workout place…there is always an older person dedicated to being in top shape and low body fat.
But look at their face and skin…there is no getting away from age. As Steve Jobs gets older, especially being a vegetarian and not eating as much protein, it is natural for his face and body to look more drawn.
Steve Ballmer is a walking jelly doughnut time bomb waiting to have a stroke any second…but the real fact is…nobody cares and many would celebrate. I would suggest to Steve to maybe eat more protein and tone up with some light weights, but his face is not going to change much no matter what he does…I accept him as he is…none of us are getting any younger and we still see him as the perky young visionary with an attitude. He has mellowed and is not young any more, but he is even more as a visionary with much more wisdom on his side.
The competition is desperate and will report anything…now that the headlines worked for them…we can all expect much more negative headlines…truth is…Apple is putting alot of companies out of commision…they will be hated even more.
I think instead of have a record of how many times Apple has been declared dead, that we should now have a record of how many times Steve Jobs has been declared dead.
His exercise video will be out shortly, then the pundits will demand a porn video of him to keep him alive.
“MDN’s “take” is nothing but speculation.”
Yep, … A wild conspiracy without a shred of evidence… Again, these kids have little understanding of business or investing… If Apple drops, to these kids, it must because the fix is in,…
I bought more Apple shares at opening this morning. Only small. I bought 90 shares at 45 a while ago and now another 30 at 149. I do not have a lot to spend. Can’t go wrong. Join me.
Where’s Moe Howard when we need to settle things down here? The truth is getting lost in all the BS about the purported health of Steve Jobs. Everyone is making assumptions, but no one is looking for the facts.
There was an excellent article I read over a month ago about the lasting effects of surviving the type of pancreatic cancer that struck Steve Jobs. Following surgery and treatment, one side effect is a dramatic change in the person’s digestion and metabolism. Simply put, it is difficult for the survivor to gain weight, and the person usually will stay svelte but healthy for the rest of their lives. This DOES NOT mean their life is threatened. In fact, quite the opposite. But it changes them.
To the rest of you fat asses, Steve may look skinny. But this is not indicative of his true health. If you doubt what I say, consider the following two words about another cancer survivor:
Lance Armstrong
Steve Jobs is a very private individual. That is his right under the Constitution. Being a CEO of a publicly held company does not legally obligate him to disclose personal matters. Ask anyone who has survived cancer, and who has been altered by it, and they will tell you that this is something that is very close to their heart. It is up to the cancer survivor, not to reporters or Wall Street analysts, to decide what part of their private lives they wish to make public.
Ask yourself: what parts of your private life would you want to keep that way? Is it the public’s right to know everything about something you hold personal?
I thought so.
Keep in mind that this labeling of Steve as “gaunt” and possibly in poor health is coming from a nation of fat f%#ks. I’m willing to bet all in involved in this fiasco have back tits and protruding bellies – sadly, that’s the American way.
Vegetarians tend to be of normal, healthy body weights – which is thin.