Honoring Steve Jobs
People know I like (and own) Apple stock so I've gotten several emails asking me what I think will happen to their stock price, now that Steve Jobs has resigned as CEO.

The answer I have to give them is that I have no clue.

To some extent, the market has become a huge gambling hall where microtraders and short sellers play games.

I have no idea how they will react to this news.

I do know these things.

I know that Apple is a company that is producing products that more and more people around the world want. We see all our friends in the US walking around with IPhones and Ipads but they also have significant growth around the world. In their own words have "only scratched the surface" of the potential they see in China.

I know that the buzz about the IPhone 5 is that it will be a big hit.

I know when they release their earnings that the reports are clean and simple, not paragraphs of "one time charges" that I need to ignore to make the numbers come out to something palatable.

I know the stock is trading at a very reasonable valuation, a P/E of 15 for a stock whose YOY sales have increased 60-80% for the last 5 quarters.

If I ruled the world, this is what I'd like to see happen. I'd like everyone to go out today and buy a share of Apple stock in honor of Steve Jobs. I'd like everyone to donate their share to a good cause they are passionate about. Perhaps if enough of us could do this, and the benefits of having stock prices correlate to fundamental business success were being reaped by lots of visible worthy causes, some of those who use our equity markets as a gambling hall would think twice about playing their games and there would be at least one stock in the US equity markets that would be available for people who really want to invest, not to gamble.

I can only impact my little corner of the world, but I am going to follow through on my idea personally.

At least it gives me an opportunity to honor someone who has changed the world during my lifetime.

I wish you and your family all the best, Steve Jobs.

Laurie Frederiksen
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Nice post, Laurie, I've been asked this same question lately by a couple of friends who own Apple. My response was, "hey!, I'm trying to figure out what will become of my Qualcomm shares and other companies who rely heavily on Apple for their sales." Apple did fine during Steve's last "retirement", so I think that's a sign going forward. But in a pannicky market, anything can happen. HIs cancer has a poor mortality rate, so i, too, wish him the best.
Lynn Ostrem
Crow River Investment Club

Laurie, great post and nice sentiment.  I'll take your suggestion under consideration, for a later time.  Mr. Jobs is still the Chairman, thus he is still with us.

As you know, I also own AAPL.  No e-mails today, but I've had the "question" for several months now.  My view has been that the stock would dip for a short while, but that Steve's illness has been taken into account, which for me explained why the P/E was 15 (vs. 23.5 average).  Since AAPL is down ONLY 1.1% (at this moment), I think that view was correct.  (We'll see in a week whether my guesses were correct.)

Last night I told my wife that I probably would buy more AAPL today.  Being down less than the indexes, I'll wait a while longer.  (And, isn't it a testament to Apple itself that it continues to out perform the indexes?!?)

Thanks again for the thought post.

Roy Chastain

"Good judgment comes from experience, and a lot of that comes from bad judgment."  

Will Rogers

--- On Thu, 8/25/11, Laurie Frederiksen <> wrote:

People know I like (and own) Apple stock so I've gotten several emails asking me what I think will happen to their stock price, now that Steve Jobs has resigned as CEO.


I thought your post was awesome and inspiring on so many
levels. Thanks for sharing your knowledge and ideas. I
really appreciated your thoughtfulness on this subject and
to Mr. Jobs. I wish more of wallstreet had some kindness &
thoughtfulness running through their veins.