Accounting for the current price weakness in AAPL
The recent weakness of AAPL in the stock market has
been due to the publicity of the following two
articles in the public media.
1. June 19 article in the NY Times, "Jobs registers
to sell his Apple Shares".
2. June 26 article in Reuters News that BBDO West has
resigned as ad agency for Apple.
The first news heading is misleading. On first reading,
it seems to say that Jobs is selling his APPL shares.
But he fact, he is only registering them in doing the
NEXT deal, to make the AAPL shares elibible for sale.
The second news item should in fact be beneficial to
AAPL. Since BBDO has been doing APPL's ad for 12 years,
it is time for a change and a potential for great cost
saving for AAPL.
Below 15, AAPL is a great bargain for patient investors.
New Item # 1
June 19, 1997
Jobs Registers to Sell His Apple Shares
Steve Jobs has registered to sell all but one of the 1.5 million
shares of Apple Computer that he acquired when he agreed in
December to sell Next Software to Apple for $400 million.
Since the acquisition, Jobs has served as a part-time adviser to
Apple, which he cofounded. Jobs was ousted from Apple in 1985.
After leaving Apple, he went on to found Next and Pixar Inc., the
computer-animation studio that helped make "Toy Story."
In recent months, Jobs has emphasized that he is spending nearly all
his time at Pixar with the advisory role at Apple being secondary.
Jobs said the filing was a routine matter done on his behalf by Apple.
"I haven't sold any shares, and my intentions haven't changed at all,"
he said.
Nancy Paxton, director of investor relations at Apple, said the
filing with the Securities and Exchange Commission was merely a
follow-up step in connection with the acquisition of Next.
The stock issued to Jobs as part of the purchase of Next consisted of
newly issued Apple shares. For those to have any marketable value, she
added, they had to be registered with the SEC at some point.
News item # 2
08:48 AM ET 06/26/97
BBDO West says to resign as Applead agency
LOS ANGELES, June 26 (Reuter) - BBDO West said Thursday it
resigned from the Apple Computer Inc advertising account after
being informed of the company's desire to conduct a review of
advertising agencies.
Apple announced Thursday it would reassess general
advertising needs in the U.S., consistent with its
restructuring of its marketing operations and strategy.
As a result, the company said it is inviting a number of
advertising agencies, including BBDO, to participate in an
account review.
BBDO West said the Apple account represents 20 percent of
its billings.
"For the past few years, we have stretched our people to
their limits to be responsive to Apple's needs..." said Allen
Rosenshine, chairman and chief executive of BBDO Worldwide, the
agency's parent. "We will certainly not compete for the
opportunity to continue in this situation."
The resignation will take effect when the current contract
expires on September 30. Apple said it expects to finalize its
selection by the end of that month.
The agency said it has created advertising for Apple for 12
years.
BBDO is owned by Omnicom . |
