Apple CEO Steve Jobs today sent the following email to all Apple employees:
Team,
At my request, the board of directors has granted me a medical leave of absence so I can focus on my health. I will continue as CEO and be involved in major strategic decisions for the company.
I have asked Tim Cook to be responsible for all of Apple’s day to day operations. I have great confidence that Tim and the rest of the executive management team will do a terrific job executing the exciting plans we have in place for 2011.
I love Apple so much and hope to be back as soon as I can. In the meantime, my family and I would deeply appreciate respect for our privacy.
Steve




chach17 2:41 pm on January 17, 2011 488 days ago Reply
So I think this begs the obvious question. What does this mean for Apple’s stock price in the near term? I for one am thankful that this has been announced on a day that the market’s are not open. An extra day for this news to be digested will hopefully cut down on the volatility.
Nicu 2:54 pm on January 17, 2011 488 days ago Reply
http://www.reuters.com/finance/stocks/chart?symbol=AAPL.F
AAPL went down in Frankfurt as much as 8.7% today – I hope it will not be that much in a more liquid market tomorrow, in any case this breaks somewhat my options strategy
I wish him well !
carlmuck 3:10 pm on January 17, 2011 488 days ago Reply
Yes, I guess tomorrow will be more interesting than usual for an earnings day. I wonder about the timing, just before earnings, rather than just after. Wonder if this is pre-saging really, really good numbers, get the “bad news” out now so that the “great news” isn’t drowned out.
I, luckily, got out of all my AAPL positions on Friday. I was expecting the usual pull back post earnings, and was preparing to re-enter in the $305-315 range. If European trading is a true indication, it looks like I may be in sooner than I thought.
conshmillo 3:19 am on January 18, 2011 488 days ago Reply
First, best wishes to the man! I hope whatever it is he is fighting he can beat it again. He seems to be very pragmatic man and he seems to be able to do the uncomfortable decisions today for the sake of better future. I wish him best luck in what he needs to do in regard to his health and to recover soon.
As for AAPL’s stock price, it should be quite volatile in the next few days. First there could be a quite selloff as a reaction to the news. If it dips too far, there could be some opportunists to load up after the dip in hopes of price bouncing back on earnings. Yet after the earnings price may drop yet again, induced by people taking profits after the earnings and reacting to uncertainty in regard to Steve’s return. Uncertainty creates pullbacks.
As I posted here, I got July 330 PUTS at the beginning of this month. They went against me after Apple announced iPhone on Verizon. I was planning (before I learned about Steve’s announcement) to buy tomorrow (Tue) few very short term (Jan) calls that would expire on Friday, to offset the most probable earnings explosion and then to cost average my puts day after the earnings by buying more puts, expecting some profit taking after the earnings. I think a lot of the earnings expectations is being already priced in.
Now I will just have to watch how low it will get on Tuesday, if any and unload some puts if advantageous. If it doesn’t pull back too much on Tuesday, my expectation is it will pull back more after the earnings.
Nicu 6:35 pm on January 18, 2011 487 days ago Reply
http://online.wsj.com/article/BT-CO-20110118-712098.html
“A few years ago, the stock would be down 20% to 25% easily,” said Shaw Wu, an analyst at Kaufman Bros. “It’s not as meaningful anymore.”