Apple VP exercises stock options for $9.6M profit

***AppleInsider*** · 11-02-2004, 10:25 AM

With Apple's Retail strategy well on its feet and raking in cash, the company's retail chief cashes in on stock options.

Two days after Apple Computer announced its iPod Photo and U2 iPod, company Senior Vice President Ron Johnson reaped a US$9.6 million dollar profit on stock options last Thursday, as Apple's stock flirted with a new yearly high, writes The Mac Observer.

Johnson reportedly purchased the 300,000 shares of Apple stock on Oct. 28 for $18.59 and immediately dumped them at a market value of $50.5875 a share, taking home a pre-tax profit of $9,626,250.00, according to a a filing made Monday with the U.S. Securities and Exchange Commission.

Prior to heading up Apple's retail strategy, Johnson held various management positions at the Target Corporation, including Vice President of Merchandising for Target Stores.

During Apple's last fiscal year, the company's retail stores hosted 24 million visitors and generated $1.2 billion in revenues, continuing one of the greatest success stories in retail history.

Speaking at the annual conference of The Center for Design and Business in Providence, RI this April, Johnson announced that Apple's stores were the fastest retail chain to ever to reach the $1 billion sales figure (3 years), besting previous record-holder The Gap, which took 4 years to hit the same figure.

[ View this article at AppleInsider.com ]

fahlman · 11-02-2004, 10:32 AM

So Mr. Johnson beleives that we have seen Apple's stock peak and is getting out while the getting is good?

gorickey · 11-02-2004, 10:35 AM

Quote:

Originally posted by fahlman
So Mr. Johnson beleives that we have seen Apple's stock peak and is getting out while the getting is good?

No, he's just smart is all. Even if AAPL goes up more, he did just fine obviously...

fahlman · 11-02-2004, 10:46 AM

Up almost $2.25 since he sold. It's at $52.80. He could have made and extra $675,000

Edit: I was kidding. What's the difference between 9.6 and 10.2?

Denmaru · 11-02-2004, 11:14 AM

I think at this point, that´s irrelevant... :3
Way to go, Apple.. :3

talksense101 · 11-02-2004, 11:31 AM

Quote:

Apple VP excercises stock options for $9.6 profit

$10 profit?

Fix the title.

Kickaha · 11-02-2004, 12:31 PM

Quote:

Originally posted by fahlman
So Mr. Johnson beleives that we have seen Apple's stock peak and is getting out while the getting is good?

Or he saw a house he wanted, or he had a side venture he needed to finance, or, or, or...

There are a million reasons why he may have sold now... a perceived peak being only one of them.

Given the advance warning that officers of the company need to give before selling though, he likely filed for this weeks or months ago.

york2600 · 11-02-2004, 12:38 PM

This happens all the time. It's really nothing new. I was looking at the data for Apple a few weeks back thinking how much money those execs pull in off insider transactions (not insider trading).

Here's the link to see all the insider transactions.
http://finance.yahoo.com/q/it?s=AAPL

Northgate · 11-02-2004, 12:38 PM

Quote:

Originally posted by Kickaha
Or he saw a house he wanted, or he had a side venture he needed to finance, or, or, or...

There are a million reasons why he may have sold now... a perceived peak being only one of them.

Given the advance warning that officers of the company need to give before selling though, he likely filed for this weeks or months ago.

Exactly.

Now if I can just track him down so I he can help fund my movie!

MasonMcD · 11-02-2004, 01:03 PM

Quote:

Originally posted by AppleInsider
With Apple's Retail strategy well on its feet and raking in cash...

Good to see you fixed this. Bleeding cash of course means *losing* money.

Eugene · 11-02-2004, 04:51 PM

Johnson exercised his options on the 28th. The 29th was the last trading session of the month. Perhaps he had expiring options? This news update is enitrely presumptuous.

Randycat99 · 11-03-2004, 01:31 AM

Anybody else here benefitting from Apples frantic pace to the sky? I'm sure regretting I didn't jump in around Jan 04.

Last time I checked (which was a long while ago), they were running pretty flat, and then *blink*, not so flat.

macdeutsche · 11-03-2004, 04:00 PM

Sooner or later, the stock price will go down. Right now it is too high. With one annoncement of slowed growth of ipod, the AAPL will suffer significantly.

They have to either 1. develop an strategy to continue ipod like growth or 2. improve the mac division. None of these will not be easy.

I am not sure whether the gain was paper gain or not, but if his company's stock will go down signficantly and he escaped with cash, then he will be the one that shareholders would be furious about. Exercising decision is not easy.

Randycat99 · 11-03-2004, 04:36 PM

Yes, the rise as of late does seem a bit drastic. I wouldn't trust it to stay up there for long, either.

niji · 11-04-2004, 10:45 AM

i bought at 17.65.
i am not selling.
it will split at 60 something.
think different.

Randycat99 · 11-04-2004, 02:48 PM

Man, that's effing sweet! Don't you wish you had started that with a great big wad (the all the marbles approach)? The possibilities...

11-02-2004, 10:25 AM	#1
*AppleInsider* Kasper's Automated Slave Join Date: Nov 1997 Posts: 6,153	Apple VP exercises stock options for $9.6M profit With Apple's Retail strategy well on its feet and raking in cash, the company's retail chief cashes in on stock options. Two days after Apple Computer announced its iPod Photo and U2 iPod, company Senior Vice President Ron Johnson reaped a US$9.6 million dollar profit on stock options last Thursday, as Apple's stock flirted with a new yearly high, writes The Mac Observer. Johnson reportedly purchased the 300,000 shares of Apple stock on Oct. 28 for $18.59 and immediately dumped them at a market value of $50.5875 a share, taking home a pre-tax profit of $9,626,250.00, according to a a filing made Monday with the U.S. Securities and Exchange Commission. Prior to heading up Apple's retail strategy, Johnson held various management positions at the Target Corporation, including Vice President of Merchandising for Target Stores. During Apple's last fiscal year, the company's retail stores hosted 24 million visitors and generated $1.2 billion in revenues, continuing one of the greatest success stories in retail history. Speaking at the annual conference of The Center for Design and Business in Providence, RI this April, Johnson announced that Apple's stores were the fastest retail chain to ever to reach the $1 billion sales figure (3 years), besting previous record-holder The Gap, which took 4 years to hit the same figure. [ View this article at AppleInsider.com ]

11-02-2004, 10:32 AM	#2
fahlman Registered User Join Date: Jun 2002 Posts: 625	So Mr. Johnson beleives that we have seen Apple's stock peak and is getting out while the getting is good? NOTICE: While every effort has been made to ensure the accuracy of the information supplied herein, fahlman cannot be held responsible for any errors or omissions. Unless otherwise indicated, opinions expressed herein are those of fahlman and do not necessarily represent the views of AppleInsider.com

11-02-2004, 10:46 AM	#4
fahlman Registered User Join Date: Jun 2002 Posts: 625	Up almost $2.25 since he sold. It's at $52.80. He could have made and extra $675,000 Edit: I was kidding. What's the difference between 9.6 and 10.2? NOTICE: While every effort has been made to ensure the accuracy of the information supplied herein, fahlman cannot be held responsible for any errors or omissions. Unless otherwise indicated, opinions expressed herein are those of fahlman and do not necessarily represent the views of AppleInsider.com Last edited by fahlman; 11-02-2004 at 11:26 AM..

11-02-2004, 04:51 PM	#11
Eugene Moderator Emeritus Join Date: Nov 2001 Location: Hillsborough, CA Posts: 8,198	Johnson exercised his options on the 28th. The 29th was the last trading session of the month. Perhaps he had expiring options? This news update is enitrely presumptuous. I can change my sig again!

11-03-2004, 01:31 AM	#12
Randycat99 Banned from AO Join Date: Nov 2001 Location: Little Saigon- er I mean, Westminster, CA Posts: 1,919	Anybody else here benefitting from Apples frantic pace to the sky? I'm sure regretting I didn't jump in around Jan 04. Last time I checked (which was a long while ago), they were running pretty flat, and then blink, not so flat. Lauren Sanchez? That kinda hotness is just plain unnatural.

11-02-2004, 11:14 AM	#5
Denmaru Registered User Join Date: Oct 2004 Location: Vienna Posts: 182	I think at this point, that´s irrelevant... :3 Way to go, Apple.. :3

11-02-2004, 12:38 PM	#8
york2600 Registered User Join Date: Nov 2004 Location: Portland, OR and McMurdo Station, Antarctica Posts: 11	This happens all the time. It's really nothing new. I was looking at the data for Apple a few weeks back thinking how much money those execs pull in off insider transactions (not insider trading). Here's the link to see all the insider transactions. http://finance.yahoo.com/q/it?s=AAPL

11-03-2004, 04:00 PM	#13
macdeutsche Registered User Join Date: Nov 2004 Posts: 4	Sooner or later, the stock price will go down. Right now it is too high. With one annoncement of slowed growth of ipod, the AAPL will suffer significantly. They have to either 1. develop an strategy to continue ipod like growth or 2. improve the mac division. None of these will not be easy. I am not sure whether the gain was paper gain or not, but if his company's stock will go down signficantly and he escaped with cash, then he will be the one that shareholders would be furious about. Exercising decision is not easy.

11-03-2004, 04:36 PM	#14
Randycat99 Banned from AO Join Date: Nov 2001 Location: Little Saigon- er I mean, Westminster, CA Posts: 1,919	Yes, the rise as of late does seem a bit drastic. I wouldn't trust it to stay up there for long, either. Lauren Sanchez? That kinda hotness is just plain unnatural.

11-04-2004, 10:45 AM	#15
niji Registered User Join Date: Nov 2001 Location: Tokyo Posts: 261	i bought at 17.65. i am not selling. it will split at 60 something. think different.

11-04-2004, 02:48 PM	#16
Randycat99 Banned from AO Join Date: Nov 2001 Location: Little Saigon- er I mean, Westminster, CA Posts: 1,919	Man, that's effing sweet! Don't you wish you had started that with a great big wad (the all the marbles approach)? The possibilities... Lauren Sanchez? That kinda hotness is just plain unnatural.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode