Watching Apple Like a Hawk

As the Dow touches 13,000 I am nervously watching Apple’s stock (which I own for myself and for others). Fred Anderson, former Apple CFO, has settled with the SEC and agreed to turn over $3.5 million in personal option backdating profits.

Meanwhile, Apple General Council Nany Heinen has refused to admit wrong doing to the SEC, stating that hundreds of executives engaged in options backdating without knowingly breaking the law. She also takes the SEC to task for its well-known tactic of only going after high profile targets, while ignoring hundreds of smaller fish. The fact that Martha Stewart is about the only person to go down for insider trading in the past decade is fairly illustrative of this morally questionable SEC policy.

But the news of gravest concern for Apple stockholders is the fate of Steve Jobs. While the SEC has now stated they will not pursue action against Apple, Inc., they have not announced whether they will pursue action against Steve Jobs. Since part of Fred Anderson’s settlement seems to be to wag his finger at Steve Jobs, this is unsettling news. Valleywag already sold their Apple stock this morning.

As of this writing, Apple is up $1.22 at $94.46.

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2 Responses to Watching Apple Like a Hawk

  1. khartand says:

    You must be pretty happy, AAPL had a nice earnings and stock price pop.

    It will be very interesting if and how far the SEC and friends will try to make Steve Jobs a poster boy for the options backdating scandal. it’s interesting that in just a few days, Apple’s case is developing from inaudible background noise into a full blown soap opera between Fred Anderson, Heinen, and Jobs among others.

    While there won’t be any SEC against the company, any action against Jobs, especially that would impact his ability and credibility to continue his duties as the company’s leader could have negative impact. Especially everyone seems to regard him more than just any CEO, but also as the company’s spiritual leader and guiding light. He’s also a the company’s biggest marketing ambassador.

    Yeah i think the company’s still performing solidly now with exciting products and cult customer base. Maybe the whole drama won’t affect anything much. But I am staying away until all the dust settles.

  2. Jon says:

    All very true.

    $102 in afterhours. Still, as you say, it could be erased if the wind blows the wrong way for Steve Jobs. I’m surprised the market is not accounting for this uncertainty. Maybe the market knows more than we do!

    Nervously holding…

    Jon

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