Reason for APPL Exec. Stock Sell-off...

Posted:
in Future Apple Hardware edited January 2014
There has been a lot of concern recently about all the Apple execs. selling off stocks or excercising and selling stock options. The sheer number of execs doing so now is unusual and indicates something is up. Here's my theory...



Apple is about to spin-off another company. Maybe Quicktime will be fully spun-off as a separate company, or perhaps it will be a new Multimedia Software company (bringing together all the expertise, patents, etc. that they have acquired) to develop and sell Final Cut, Cinema Tools, Shake, Tremor, etc. Or perhaps even a hardware R&D/Production company for processors (not so likely, IMO), Firewire silicon (more likely given the acquisition of Zayante) or Digital Hub devices (not so likely, given that it is a reason to buy a Mac). I'd bet on either QT or Firewire silicon.



Apple shareholders would automatically receive shares in the new company, but they would likely also have the opportunity to buy more shares at the outset. All these execs may be selling Apple shares in order to buy into a bigger chunk of the new company.



Other thoughts?
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Comments

  • Reply 1 of 33
    spotbugspotbug Posts: 361member
    They're selling now, because now is when they can do it without appearing to be jumping ship. If you do it when the company is doing poorly, it doesn't look too good. If you do it because you think the company will be doing poorly soon, you could get sued when it does do poorly.
  • Reply 2 of 33
    andersanders Posts: 6,523member
    Its because they want Jaguar now and not in August.
  • Reply 3 of 33
    keyboardf12keyboardf12 Posts: 1,379member
    ditto what spotbug said.
  • Reply 4 of 33
    programmerprogrammer Posts: 3,409member
    Perhaps if they wait to sell until after some stupendously awesome announcement at MWNY they could also be subject to close examination. Executives are always subject to very restrictive trading "windows" when they are allowed to sell.
  • Reply 5 of 33
    naepstnnaepstn Posts: 78member
    [quote]Originally posted by spotbug:

    <strong>They're selling now, because now is when they can do it without appearing to be jumping ship. If you do it when the company is doing poorly, it doesn't look too good. If you do it because you think the company will be doing poorly soon, you could get sued when it does do poorly.</strong><hr></blockquote>



    The only problem with this is that these execs. know that if they are all applying to sell large amounts of shares, then stock price will drop before they are allowed to sell.



    I'm by no means saying that you aren't right; it's a valid possibility. I think that it's not the only possibility though, and many things to me would point to a spin-off.
  • Reply 6 of 33
    cindercinder Posts: 381member
    Maybe they're all chipping in on a floating space castle.



    That's just about as probable.
  • Reply 7 of 33
    naepstnnaepstn Posts: 78member
    [quote]Originally posted by cinder:

    <strong>Maybe they're all chipping in on a floating space castle.



    That's just about as probable.</strong><hr></blockquote>



    Yeah, just as probable!

  • Reply 8 of 33
    crusadercrusader Posts: 1,129member
    Well Apple isn't getting sold, and this indicates bad news in the short term (oh f***). So many execs selling short term really means somthing bad (or steve's misinformation department has had all of the execs sell off appl to create FUD).
  • Reply 9 of 33
    naepstnnaepstn Posts: 78member
    [quote]Originally posted by Crusader:

    <strong>Well Apple isn't getting sold, and this indicates bad news in the short term (oh f***). So many execs selling short term really means somthing bad (or steve's misinformation department has had all of the execs sell off appl to create FUD).</strong><hr></blockquote>



    Somehow, I think the SEC might want a word with Steve if he was manipulating APPL stock as part of a business strategy.
  • Reply 10 of 33
    nonsuchnonsuch Posts: 293member
    Historically, Apple's stock tends to dip following a Macworld expo, particularly, it seems, when a major new product is announced. (Figure that out.) It's pretty widely agreed that something major is going to be unveiled in July, so maybe these folks are simply determined to scoop up some cash before the inevitable stock depression. It is odd that so many people would be selling at once, though.
  • Reply 11 of 33
    pesipesi Posts: 424member
    well, if you kept up <a href="http://www.crazyapplerumors.com/2002_05_12_archive.htm"; target="_blank">crazy apple rumors</a>, you'd know it was because they were pooling it together to buy a puppy.
  • Reply 12 of 33
    spotbugspotbug Posts: 361member
    [quote]Originally posted by naepstn:

    <strong>The only problem with this is that these execs. know that if they are all applying to sell large amounts of shares, then stock price will drop before they are allowed to sell.</strong><hr></blockquote>



    It's not a problem for the reason why they're selling now, if that's what you mean. It is a problem for them, though, yeah. This is just the way it is when you're an executive with stock (options). You don't get to sell at "just the right moment". Think about it, it wouldn't be fair to all the other share-holders. Executives have too much influence and inside information. The SEC wants a level playing field, so they watch this stuff closely.



    I think what happened was one of the execs (I forget who was first) decided now was a good time to sell (SEC-wise) - Apple's looking good and maybe they figure the stock is likely to go up. After the first one sold a bunch, the others were like, "Hey, yeah, good time to sell without raising suspicions. Except on AI."
  • Reply 13 of 33
    naepstnnaepstn Posts: 78member
    [quote]Originally posted by spotbug:

    <strong>



    It's not a problem for the reason why they're selling now, if that's what you mean. It is a problem for them, though, yeah. This is just the way it is when you're an executive with stock (options). You don't get to sell at "just the right moment". Think about it, it wouldn't be fair to all the other share-holders. Executives have too much influence and inside information. The SEC wants a level playing field, so they watch this stuff closely.



    I think what happened was one of the execs (I forget who was first) decided now was a good time to sell (SEC-wise) - Apple's looking good and maybe they figure the stock is likely to go up. After the first one sold a bunch, the others were like, "Hey, yeah, good time to sell without raising suspicions. Except on AI." </strong><hr></blockquote>



    These people are not selling all their shares or options, only part, as far as I know. They also are quite aware of the ramifications of their actions when they all sell stock. Therefore, I find it hard to believe that they would all start selling like this, knowing that it will likely make investors skiddish about investing in APPL, thereby lowering the value of their remaining stock.



    One explanation I can think of why they would do it anyway, is that they know the reason for their actions will be explained soon, and will not cause a stock value drop. (i.e. if they are investing in a new spin-off).
  • Reply 14 of 33
    pesipesi Posts: 424member
    People are missing something here:



    This exact same thing happens at all companies. Truly, it does.



    So, big deal. Some Apple execs are selling some of their stock so they can *gasp* MAKE SOME MONEY.



    Who would have thought?



    It's just that most rumor-mongering mac users refuse to acknowledge the fact that THIS DOESN'T MEAN A DAMN THING.
  • Reply 15 of 33
    bdeasybdeasy Posts: 5member
    [QUOTE]Originally posted by pesi:

    [QB]People are missing something here:



    This exact same thing happens at all companies. Truly, it does.



    Check out the insider trading at Dell.



    <a href="http://biz.yahoo.com/t/d/dell.html"; target="_blank">http://biz.yahoo.com/t/d/dell.html</a>;



    Execs at all Publically traded companies regularly cash out their options. Wouldn't you?
  • Reply 16 of 33
    bigcbigc Posts: 1,224member
    [quote]Originally posted by Nonsuch:

    <strong>Historically, Apple's stock tends to dip following a Macworld expo, particularly, it seems, when a major new product is announced. (Figure that out.) It's pretty widely agreed that something major is going to be unveiled in July, so maybe these folks are simply determined to scoop up some cash before the inevitable stock depression. It is odd that so many people would be selling at once, though.</strong><hr></blockquote>



    That's reasonable and has been addressed in the press. On the other hand: are they selling stocks that they own, are they selling options, did they exercise options recently??

    Anyone have the facts involved with the issue or is this the typical Apple is going under thread based on absolutely no facts except some body at Apple sold some stock.
  • Reply 17 of 33
    spotbugspotbug Posts: 361member
    [quote]Originally posted by naepstn:

    <strong>These people are not selling all their shares or options, only part, as far as I know.</strong><hr></blockquote>



    Irrelevant.



    [quote]<strong>They also are quite aware of the ramifications of their actions when they all sell stock. Therefore, I find it hard to believe that they would all start selling like this, knowing that it will likely make investors skiddish about investing in APPL, thereby lowering the value of their remaining stock.</strong><hr></blockquote>



    Look, can you see that they would want to sell at some point? Everybody does. Not counting dividneds, stock is only valuable if you can sell it. They (the execs) can't sell when Apple's about to tank because they'll get into trouble. For execs, these sell opportunities don't come too often. That's why they are selling it's a good time to do it without people raising their eyebrows. Obviously they weigh this against how it looks, but they hope the stock-buying public understands what's happening.
  • Reply 18 of 33
    buonrottobuonrotto Posts: 6,368member
    The stock went up and has stayed fairly steady for a while now.
  • Reply 19 of 33
    What kind of hardware is a stock option, anyway?



    TING5
  • Reply 20 of 33
    bigcbigc Posts: 1,224member
    [quote]Originally posted by There is no g5:

    <strong>What kind of hardware is a stock option, anyway?



    TING5</strong><hr></blockquote>



    That's a good question. I think it has an x86 in it though w/DDR memory on a stick.
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