Apple shares fall 5 percent on latest options scare

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  • Reply 41 of 49
    backtomacbacktomac Posts: 4,579member
    We may now know why Jobs has outside counsel. He apparently took 7.5 million stock options without knowledge of the board of directors in 2001. It's starting to smell fishy.
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  • Reply 42 of 49
    mgkwhomgkwho Posts: 167member
    Today's shares are better than Tuesday's, so this article really should be deleted.



    Comment on shares before marketshare closure is very unprofessional.



    AppleInsider is quickly losing respect as far as legit articles go.



    -=|Mgkwho
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  • Reply 43 of 49
    Quote:
    Originally Posted by mgkwho View Post


    Comment on shares before marketshare closure is very unprofessional.



    Huh!? Who is the controlling authority that judges something like this to be 'unprofessional?' Are you suggesting that, either: (i) a problem does not exist, or (ii) if it does, it will go away if articles like this are rescinded?



    Quote:
    Originally Posted by mgkwho View Post


    AppleInsider is quickly losing respect as far as legit articles go.



    -=|Mgkwho



    I suppose that depends on your point of view: AI gained respect in my eyes today!
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  • Reply 44 of 49
    mgkwhomgkwho Posts: 167member
    Quote:
    Originally Posted by anantksundaram View Post


    Huh!? Who is the controlling authority that judges something like this to be 'unprofessional?' Are you suggesting that, either: (i) a problem does not exist, or (ii) if it does, it will go away if articles like this are rescinded?



    Since when is it professional to comment on something (as a final press release of sorts) before it is over? That's like announcing the candidacy for president when there are still 6 hours of voting left.



    It's one thing to say what's happening during the day. It's another to predict the future and use it as fact in a misleading title. Yes, shares fell, but they came back before the market closed.



    Take that stick out.



    -=|Mgkwho
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  • Reply 45 of 49
    If you go to financial websites, cnbc cnnfn ect.., you'll see that they regularly comment on stock intra-day movements. It's really pretty common.
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  • Reply 46 of 49
    Quote:
    Originally Posted by backtomac View Post


    If you go to financial websites, cnbc cnnfn ect.., you'll see that they regularly comment on stock intra-day movements. It's really pretty common.



    Yes.



    And, the US is not the only country with a stock market! There are others open when the US is closed.



    Stocks such as Apple trade around the clock in other world markets, such as London and Tokyo -- for instance, the 4% drop this morning prior to the US market opening seems to have been driven by acitivity in the European markets, in turn, resulting from FT's reporting.
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  • Reply 47 of 49
    Quote:
    Originally Posted by gregmightdothat View Post


    Maybe not to stupid people.







    Because if Apple were allowed to go around forging documents and statements all the time, then investors have absolutely no idea how Apple is performing.



    Punishments don't occur to "undo" crimes. They exist to prevent future ones.



    Apple already lied to shareholders. This 5% drop is nothing?it's likely negligible to a long term holder. Apple being accountable to accurately disclose their performance is immeasurably important for not only Apple shareholders, but to the stock market, and the entire economy of the United States.



    They say ad hominen attacks are usually a sign that you are winning the argument. No one has accused Apple of forging documents and statements. It also has nothing to do with the company's performance. They didn't overstate earnings. They are saying that they failed to properly report back-dated options. At most its a technical violation. Everyone knows what options were granted to the corporate officers, and to the extent that they could affect share prices, they have already been accounted for.



    What is the SEC really after? Its not helping shareholders, its hooking a big fish, and they don't care how much their personal ambitions may actually be hurting shareholders.
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  • Reply 48 of 49
    jeffdmjeffdm Posts: 12,954member
    Quote:
    Originally Posted by bryand View Post


    No one has accused Apple of forging documents and statements.



    Did you miss this?



    http://us.ft.com/ftgateway/superpage...6189285&page=1



    Quote:
    Originally Posted by bryand View Post


    They are saying that they failed to properly report back-dated options. At most its a technical violation.



    My understanding is that backdated options is taxed a little differently because it's effectively pay that's cashable, where an option that has a proper strike date does not. As such, it could be considered tax evasion and fraud. I don't understand why industry acceptance of a practice makes it right. Letting an employee pick the strike date after the fact disconnects the idea that options are based on future performance, basically it's instant pay at greater expense to the company because the company still has to pay the difference.



    Quote:

    What is the SEC really after? Its not helping shareholders, its hooking a big fish, and they don't care how much their personal ambitions may actually be hurting shareholders.



    Casually waving away potentially serious charges as insignificant doesn't help your argument.
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  • Reply 49 of 49
    backtomacbacktomac Posts: 4,579member
    Quote:
    Originally Posted by bryand View Post


    They didn't overstate earnings.



    If the options were not accounted for properly, which is the allegation, then earnings were overstated. Why do you think they are releasing revised earnings statements today after the bell?
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