Talk:Apple, Inc. (AAPL)
From ValueWiki
Click the blue 'edit+' link at the top of the page to post a message.
Contents |
|
|
Options backdating and class action lawsuits
If Apple rises to say $90 per share soon, will any future class action lawsuit against Apple be laughed out of court? I bought Apple at $58 per share a couple of months ago and still have it. But the press loves to link Apple’s name with the options fiasco because it is the best known name. At what point will the market decide that backdating has become a dead issue for Apple and kick up the price a bit more? Has this recognition already happened? Or will the short sellers return after next week's euphoria in SF?
Bellbird1 11:56, 7 September 2006 (PDT)
Re:Options backdating and class action lawsuits
Bellbird1, you must be very happy now. I think the backdating scandal has been taken into account in the stock price. While there would probably be restatement, I doubt it will significantly affect future cash flow. However, as you noted, the market might view the scandal negatively, if in the future earnings, there's sign that bad press surrounding the options scandal are starting to dampen sales (growth), given that Apple's marketing is so much tied to its corporate image and Steve Jobs' charisma. So if Steve Jobs is found guilty, or consumers think that Apple is not hip anymore because of its unethical behavior and stop buying iPods and iMacs, then I would start to worry. Glancing at at its forward '07 PE of 25 (on 10/20/2006), it seems that the stock is pretty fairly priced, given the past and projected growth of their iPod and iMac businesses.
khartand 14:30, 20 October 2006 (PDT)
Re:Options backdating and class action lawsuits
Khartand. In hindsight, the scandal may have provided a buying opportunity in 2006, if the market correction overshot the cost of the restated earnings. In December 2005,before the scandal broke, the stock price touched $85. Since then the price correction occurred but earnings have grown by about 25 percent and last Friday the stock price was still only $80. The new category of electronic products that Apple is apparently ready to launch is the clincher. Yes, I am happy.
Bellbird1 18:31, 21 October 2006 (PDT)
Bought AAPL
I bought AAPL two weeks ago. I'm looking forward to video downloads. In a few years, we may not need blockbuster or netflix, just Apple. Jonathan Stokes 14:21, 23 October 2006 (PDT)
