12-17-2008, 09:48 PM
Apple shares drop after Macworld pullout
Analyst downgrades shares, saying company needs to disclose more
By Dan Gallagher & Benjamin Pimentel, MarketWatch
Last update: 4:26 p.m. EST Dec. 17, 2008Comments: 54SAN FRANCISCO (MarketWatch) -- Apple Inc. saw its shares slip Wednesday morning after the company's dramatic decision to pull out of the highly visible, annual Macworld trade show, which also raised fresh speculation about the health of Chief Executive Steve Jobs.
....Mixed reaction on news
Other analysts had a more positive take, citing sources who described Jobs' as healthy and noting that Apple has made past moves to pull out of trade events so it can better introduce products on its own schedule.
The Macworld show is owned and operated by media company IDC, not Apple.
"I think Apple wants to get away from the tyranny of MacWorld where it is forced to introduce new products on IDG's schedule, rather than its own," wrote Charlie Wolf of Needham & Co. in a report Wednesday.
He added that he had "reliable sources" who said Jobs is "cancer-free."
Keith Bachman of BMO Capital Markets said investors may conclude that Jobs is leaving the company sometime in the near term, but that he believes Jobs plans to stay with the company at least through the 2009 calendar year.
However, he also noted that the absence of Jobs on stage next month may also suggest that the company won't have any compelling new products to unveil.
"We believe that not having Mr. Jobs lead the 2009 MacWorld does suggest, consistent with our note of December 4, that this event will not be terribly meaningful," Bachman wrote. "Hence, the downside in the stock for a disappointing MacWorld is probably realized near-term rather than at MacWorld."
Now Jobs health is coming in view again...or he is leaving in 2009.
Analyst downgrades shares, saying company needs to disclose more
By Dan Gallagher & Benjamin Pimentel, MarketWatch
Last update: 4:26 p.m. EST Dec. 17, 2008Comments: 54SAN FRANCISCO (MarketWatch) -- Apple Inc. saw its shares slip Wednesday morning after the company's dramatic decision to pull out of the highly visible, annual Macworld trade show, which also raised fresh speculation about the health of Chief Executive Steve Jobs.
....Mixed reaction on news
Other analysts had a more positive take, citing sources who described Jobs' as healthy and noting that Apple has made past moves to pull out of trade events so it can better introduce products on its own schedule.
The Macworld show is owned and operated by media company IDC, not Apple.
"I think Apple wants to get away from the tyranny of MacWorld where it is forced to introduce new products on IDG's schedule, rather than its own," wrote Charlie Wolf of Needham & Co. in a report Wednesday.
He added that he had "reliable sources" who said Jobs is "cancer-free."
Keith Bachman of BMO Capital Markets said investors may conclude that Jobs is leaving the company sometime in the near term, but that he believes Jobs plans to stay with the company at least through the 2009 calendar year.
However, he also noted that the absence of Jobs on stage next month may also suggest that the company won't have any compelling new products to unveil.
"We believe that not having Mr. Jobs lead the 2009 MacWorld does suggest, consistent with our note of December 4, that this event will not be terribly meaningful," Bachman wrote. "Hence, the downside in the stock for a disappointing MacWorld is probably realized near-term rather than at MacWorld."
Now Jobs health is coming in view again...or he is leaving in 2009.