The stock slide totally benefits Apple Board Members and Management
There was no incentive to pay a preemptive dividend in 2012, because the management and board held so few shares...... No benefit to them. They had already cashed out before the slide.
Apple knew the magic number for IPhone sales was 50 Million in the first Q, yet they came up shy by only 1.5Million. At that level you could have made the number. They didn't.
They did little to defend their sales and profit numbers.... Also did little to explain the supply shortages, was it change in suppliers, quality, miscalculation of estimates..... ? They left that one for the imagination. The numbers were not that bad.......but the presentation was.
They changed their guidance process and refused to give EPS estimates...... Knowing this would create angst, and result in a drop. ( 30 points in 20 minutes when it was being explained by the CFO on the conference call)
No updates on share buybacks..... Another air ball.
In all three public appearances since the January earnings release, the stock went down 75 points as Cook was speaking, and his reaction ......... He does not like it... But has done nothing to show the market they have a plan... And reverse it. No sense of urgency here.
It sure looks like, with the help of GS and WS, and the media, they are getting this to a level that takes the pressure off, provides an good entry point for options, lower buybacks or starting point for a LBO.....
Really quite bizarre set of events. This will be one for the Harvard Business School case study .
I am trying to decide if this is the CEO and boards incompetence or if it is deliberate. What ever it is, they are killing me and many others. I find it is hard to believe they all kept their jobs after the investor votes. Can't we get someone on the board that understands their responsibility to the investors!
I know many managements do this, but I don't think Apples management is intentially doing this. I do believe they don't view the drop with the same sense of urgency as some shareholders do, but that is as it should be.
As it stands right now, Apple has a free option to purchase its shares at very attractive prices. If management had talked up the stock to where the price was 500 or 600 still, then we wouldn't have such an option.
My advice is to try and understand that the price decline is only temporary and that in a few months it will start to slowly move back to rational pricing, and in the meantime we, the company and shareholders, have free options to buy at more than reasonable prices. This is the best thing that could happen for shareholders in the long run.