Monday's scam de jour?
Friday June 28, 6:51 pm Eastern Time
Associated Press
Apple Execs' Stock Sales Studied
By MAY WONG, AP Technology Writer
Apple Computer Executives on Two Occasions Sold Company Stock Before Poor Financial Results
SAN JOSE, Calif. (AP) -- Twice within the last two years, Apple Computer Inc. (NasdaqNM:AAPL - News) executives sold company stock worth millions of dollars just weeks before Apple warned of disappointing financial results. Each earnings warning sent shares tumbling.
While the sales could have an innocent explanation, analysts consider them unusual because at no other point during the period did any other clusters of large sell-offs by Apple executives occur.
Big stock sales among executives are common, especially in the high-tech sector, where stock options are often a major part of compensation.
But insider-trading analysts consider the Apple executives' sales unusual because the people involved, though they were mostly exercising stock options, tend to be less active stock sellers.
"These sells seem to be well-timed," said Lon Gerber, director of insider research at Thomson Financial, coming as they did on the eve of two of three Apple earnings warnings over a period that began in August 2000.
"It's always a bit suspicious" when executives sell before a warning, said Martin Friedman, director of research at Friedman, Billings, Ramsey & Co. Inc.
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