Apple CEO Steve Jobs exercises options

Man….LLL how many POOR people in subprime use CREDIT CARDS?

Hello people ever hear of a little thing called Subprime Slime
Thank the hedge funds for this mess
I also noticed 90% of the market got hit so whats so special about Apple's drop in price !!

Puhlease, you dingbats. who cares about the subprime crash? people who have to go subprime dont have the money to buy apple. yet. it's just a bunch of traders moving the markets to make more money. the longterm is still kicking for apple. they are changing the damn landscape. who else is doing that? no one can even compete!

What makes a good company great? No debt, successful new product development, increasing sales and profits, no insider selling, brand awareness, global sales opportunities. This is APPLE. Do you want to miss the day the market turns and the stock price goes up $12.00 or more in hours?

I sold AAPL during the iPhone frenzy, then bought back in – way too high – during the earnings frenzy. Now I'm selling other stocks to buy more. It will bring my cost basis down to something I can live with. In the years since the iPod arrived I've done very well, but this one is always unpredictable. If, as some fellow suggested, it really does go down to 99 cents, I'll probably buy more. I'd rather go down with the ship than miss the boat.

buy sell or hold for long term? i bought it when it was 78/share.

Wish I got in at 6 dollars a share…At that price I could buy 14,166 shares. At the price of 112 I can buy 758……hmmmm….The banks are squeezing out all the margin on the stock price. IT IS GOING TO GO LOWER. At 100 a share I can buy 850. Still quite a ways away from 14,000 that I can buy at 6. I can only imagine how much you are down since the high. 25% is alot….especially out of 100K. But if you have over a million in equity what is 250K right.. I am sure you are a millionaire.

What Steve has done makes perfect sense, the options have to be excersised within the 10 year period, do it, now, split the stock… and you've got a 2fer…

$5.75 is a bargain – but only slightly less than what I paid for my Apple stock. Bought it when Job's first came back to Apple. Stock was then $12.00. After all the splits and all over the years, my purchase price per share is around $6.00.

I'm holding. Not going anywhere….

I hope you are happy with your 117 bargain. It is at 112 last I checked. I will wait for a better bargain because it is going to happen. Still not shorting, but wish I could.

dumb article, AAPL has tons of cash and 0 debt. What you forgot to mention in your little cause-effect timeline there is that the stocks that get dragged down but are actually unaffected by the problems dragging down the broader market are often the best buys once its all over…there's no bubble here…consumers buying Apple products don't give 2 shits about investors who got caught with some shitty bonds and lost some money. Apple's been dragged down by problems that should be completely unrelated to its valuation.

Steve Jobs excercising his options is no reason to panic. Now if he SELLS the 120000 shares he just excercised his options on, that would be a somewhat of a reason to panic.
Why? Because he could have excerised them at a higher price..does he think Apple is not going to get any higher in the future? Or does he just want to hold on to the stock at $115 a share in the hopes that it will soon go up?

Like someone pointed out, there is nothing wrong with Apple as a company. They reported spectacular gross and profit numbers. The market is taking all the stocks down with it. There are more sellers than buyers right now, thus making Apple's price drop more and more everyday.

I would not panic. When the market picks up again, the stock will automatically rise. This is a strong buy.

I bought some this morning for $116.91…a total bargain. AAPL is a best of breed tech stock going into a season where tech has risen something like 15 out of the last 16 years. Been in it since $22/share back in 2004 and will stay in it as long as Steve Jobs continues taking over the world with this company.

And so what if it goes down to $99? I'm a long-term investor – you'll never catch the exact bottom. If it hits $99, I'll buy more there. I'm buying on the bet that its back in the $150 range by next year which makes $117 a damn good price.

The fact that Jobs waited so long is such a positive sign…he could have cashed out at $10 a share years ago. Instead he puts his money where his mouth is and decides he can do way better than double his money on those 1200 calls…

Woohoo! I big thank you to sellers for lowering AAPL. I just bought @ 114 I just love the FUDs on this stock, now I'm going to wait for it to go up… heheh
btw, I sold @ $135 July 13. I bought those at $105, nice $30 profit per share.

First order effect: Less money around since both carry trade is unwinding and also MBS/CDO fiasco has killed liquidity at banks.

Less money = less froth

Less froth = lower valuations for all markets

Low valuations in all markets = lower valuations for high multiple stocks

High multiple stocks suffer more

It's really pathetic that this article doesn't mention that Jobs had to sell his options if he didn't want them to expire. And exercising on a dip is very sensible. It definitely does not show that Jobs is pessimistic about these shares. Any reporter worth reading would have mentioned that.

I don't think people are displeased with appl….I am investor though….The YEN is raising on the dollar and that is not good. People wake up you are losing money based on this so called loyalty to apple….The reason you can't buy more shares right now is because you bought at 145 and have no more money to invest. I can buy almost 30% more shares now. THE MARKET CORRECTION IS, IS, IS, IS GOING TO HAPPEN. WE HAVE GONE TOO FAR NOW FOR IT NOT TO HAPPEN. WAIT I TELL YOU. SELL AND WAIT.

I notice on the screen-clip accompanying the article that the options expired two days ago (Aug. 14 2007) but the document seems to be dated Aug. 15).

Anyone know how that actually works?

And I agree with those reporting that AAPL is a bargain at the moment (PEG < 1.5). I'm guessing that lots of people/entites are selling it to cover shorts and options gone sour.

To the question as to

"As soon as you explain to me how the mortgage and banking industry's inability to appropriately loan funds for real estate funding affects Apple I will then considering selling my stock."

There is in fact an impact. The credit crisis is inducing a general economic malaise which may lower people's perceived disposable income. That in turn may make Apple products relatively less attractive to many.

I think it's a second-order effect, however. It may shave off $10-$20 on target price a year from now, but I still expect that to land closer to or above $200.

That's another good point that Israeli Guy makes. The entire summer is known to be horrible for the market. But this summer has been great so far and we've only seen August as a bad month.

Christmas is around the corner, the Iphones will drop in price, more profits/sells will be made for Apple.

They've also just relased their newest bad a** Imac. Their computers keep getting more powerful and faster, and their programs continue to improve.

They're inline with Intel now. The shares in Apple are dropping now, but so are shares in all stocks. As somebody else said, don't concentrate on just Apple. It's the entire market that's falling.

Apple is also working with more and more car manufacturers to create Ipod friendly cars.

It's still listed as a buy or a hold with Edward Jones.

I panicked about a month ago and sold it all. Then I went ahead and bought back in with what I sold, and with some more money. Now it's falling. I am getting that panicky feeling that so many other uneducated investors get, but I am going to go ahead and hold it and even invest more if it gets lower.

They still have the Iphone to sell when they lower the price, which will sell even more Iphones. They still have to improve on their ITV , and rumors still circulate that they're going to get into the gaming console business again hopefully doing better than the last time they tried to make a game console.

All ratios of AAPL are sensible and indicate strong market opportunities for AAPL and its loyal customers.
P\E ratio, PEG Ratio and analysts evaluations point to aprox. 170 stock price for AAPL.
At this point I would have bought shares as much as I could.
Do not forget that August & September are considered traditionally as rollercoaster months.

OKAY THAT THE SHARES EXPIRE IN 10 YEARS….Here is the key point…..HE IS BUYING THE SHARES FOR 5.75…… I would put my life on apple shares for 5.75….who wouldn't.. To heck with 100 a share…Lets buy it for 5.75…….115 a bargain…99 better bargain….5.75 is a STEAL.

First of all those of you who are making statements that Apple is bleeding etc. no nothing about what is going in the market. Its not just Apple's stock that is falling Rim has fallen faster as well as many other stocks. The stock market is falling now on panic over the credit market. Apple is just as strong as it was a month ago. None of the Analysts who follow Apple have lowered their ratings on Apple. The market will stop falling and Apple stock will be back at $145 where it belongs. But again this is not just an Apple issue the entire market is down.

In direct response to this article it sounds to me as Steve's tax advisor consulted him to excersise these options.

Had he done this when the stock was at $146/share he would have had a larger income tax obligation than what he has now. Overall it's a great move from a tax perspective since he'll have a smaller tax bill related to the additional income tax he made off of the excersise price vs his option price. Then he holds on to it for at least a year, the stock is back up, he sells the shares and makes a long term capital gain on the sale which is only taxed at 15%….SMART!

It's really sad that the reporter here didn't bother to mention (or more likely, to find out) that options expire in 10 years, so this is not a sign that Jobs is unconfident about the stock's future.

Shame.

jf: All I did was report the fact that he exercised options to buy stock. In any case, I don't see how that would show a lack of confidence on his part. He's buying stock, after all, not selling it.

I actually want to thank John. The more people that run from Apple the lower the stock will go and I can buy more. Of course I am not selling (Buffett bought and held and then bought more). The iPhone is amazing and hasn't even hit Europe and Asia yet.

-Bob

What shocking news!!!! Or fuel for madness. As noted earlier options EXPIRE after 10 years.

Now this just becomes a posting board for short and long ranting… see ya.

John, stop being Chicken Little and thinking the sky is falling. Your panic is part of the problem here.

As soon as you explain to me how the mortgage and banking industry's inability to appropriately loan funds for real estate funding affects Apple I will then considering selling my stock. Until then settle down.

Scott NY…..man 115 is a bargain…but 99$ is a better bargain go ahead and buy in with all you got you will be had man. Wait..IT ONLY MAKES SENSE…AND MONEY!!!!!

Hahaha, I thought all the Apple fanboys said the stock would soon hit 200! Now it's on its way below 100. Hahahaha. I love it.

$115 per share? If I had the cash, I'd get in right now. What an unbelievable bargain…

Apple options expire 10 years from the date of grant, so if Jobs didn't exercise them now he'd lose them. Notice he also exercised but did not sell.

It is over….Sell like the wind people the market is going to crash it is inevitable….I love APPLE but I love my money MORE.. SELL and get out.. It is going to keep bleeding…..Get back in after this is over it is only in the middle of the huge snowball…PEOPLE HAVE SOME COMMON SENSE HERE AND MAKE LIKE A TREE AND GET OUT!!!!!!!!!!!!! Also, so you know.. I am not shorting I am LIQUIDATING.