Apple's Steve Jobs Isn't Sick - Argus

Pretty much nobody is picking up the phone at equity research firm Argus Research this morning, so take this as unverified: The firm’s analyst on Apple (AAPL), Wendy Abramowitz, this morning lowered her price target on Apple to $145 from $155, while affirming that she does not believe Apple CEO Steve Jobs’s health is deteriorating, as had been the speculation of a post on gadget site Gizmodo on Tuesday.

Abramowitz lowered her earnings estimate for Apple for the December-ended fiscal Q1, from $10.1 billion and $1.54 in EPS to $9.7 billion and $1.52, which appears to have mainly to do with the fact that December’s margins will be lower than the December quarter of 2007 when the company was riding the release of the Leopard operating system. Cronin says Apple has a “strong” long-term position, and that “the company will begin to expand the responsibilities of other top executives to plan for a successful adjustment,” if Jobs should relinquish some of his duties, according to the Briefing.com writeup of the note. More details as they arrive.

Apple shares today are up $2.60, or 3%, at $87.95.

Comments

[waf76:]

Wendy Abramowitz is merely following other analysts by downgrading the stock. Steve Jobs' health shouldn't determine the price of the stock. The company is well positioned, trading at 3.5X cash with new products, possibly a hybrid tablet/touch with a 7-9 inch screen. No one has been able to come remotely close to imitating the iphone. Just seems to take more good news than normal to move this stock. At least today is a good day.

Jan 02 03:47 PM

[Donald Johnson:]

I don't know about Steve. Until he makes an appearance where we can see how he's doing, I'm betting on the worst, which is one reason why I sold the stock a couple of weeks ago. The other reason is that despite the busy Apple store I saw a couple of times before Christmas, I think consumer spending will be weak enough to hurt AAPL, regardless of any new products.

Jan 02 05:10 PM

[David Hasson:]

I think it might be a bit premature to speculate based on the rumors of a larger touch device. One thing that has been mentioned by someone other than a rumor site is the introduction of a lower cost iPhone - which I think would really represent an aggressive move into the entire phone market. I like Jobs, but I think his role now is a little exaggerated and investors should calm down.

Jan 02 06:20 PM

[Illusional ...:]

Companies like Apple and Berkshire (just as an example) have been saddled by the fame of one person. Personally, I would not worry about Jobs' health, but the market is based on sentiment, and any ripple, however small or false will dent the stock price in the short term. I would preferably buy the share if Apple starts spreading the (Jobs') work around as a pseudo succession plan. It might cause a small chink in the armor, having less of Jobs showing around, but its a better indication that the investor is covered.

Jan 02 07:00 PM

[David Hasson:]

Well, assuming he's not actually getting worse with regards to his health, that is exactly what they are doing. They've pulled him from the Macworld limelight and are pulling out of trade show appearances (which are largely just platforms for his famous keynotes). So maybe you should buy as you say :).

Jan 02 07:17 PM

[Illusional ...:]

Indeed, I'm waiting for the big (market) leg down before I make the dive. Now, assuming his health is really getting worse, since all humans fall sick anyway, I bet there will be additional downward pressure on it.

Jan 03 12:21 AM

[Short Trade...:]

First off, I hope Mr. Jobs's health is okay. I think he is an great American, someone who represents all the things we should be focused on now... innovations, design, marketing, creating sexy products that people want. Not like the Wall Streptelians who suck us dry with useless products that wind up bankrupting the world.

Jan 03 03:51 AM

[casey00001:]

Could you tell us who Cronin is?

Jan 03 08:02 AM

[Anthony Dad...:]

Steve Jobs is very important to Apple......but even if he is not well ( and one day he will surely be sick) Apple will go one, and still be the superb consumer electronics company it is.

I am a contributor on thecreatingwealthblog....

Jan 03 08:13 AM

[Leftfield:]

Ironically, I think Steve Jobs is so highly valued because he is so rare as an inspired leader. In this era of uber-compensation of the owners which they attribute to market forces, most of them just suck.

Jan 03 08:52 AM

[Leftfield:]

I meant, "leaders," rather than owners, but, pick your poisen.

Jan 03 08:54 AM

[SPEEDOMOTIVE:]

The mark of any great CEO and Steve Jobs is certainly one of the best, is his ability to instill vision to his team. AAPL will continue to be a great innovative company long after Jobs. I'm long AAPL.

Jan 03 09:09 AM

[mollytjm:]

Apple is so huge now with so many overseas operations that the people at the top have to be increased in number and in public view. no one person, even of enormous robust health and youth, could manage to handle all of it.

Macworld was a pain for Apple. In the early days, they needed the forum. But the timing of Macworld has always been horrible...forcing Apple to bring out new products right after Christmas...which also meant no one at Apple got any vacation or sleep over the holidays.

Jobs is at his best inspiring his employees. These tech guys are usually better with ideas and things than with 'the public' as anyone who's seen Gates painful interactions with people realizes.

Apple was a niche product for a long time. That's no longer the case. They're cash rich, debt free, global and with a brilliant, enormous staff that will keep the innovations coming, no matter what. Long AAPL

Jan 03 09:50 AM

[ArtfulDodger:]

I saw Jobs this summer and he was nothing but bone and skin. I was shocked. He said he was okay, but I'd have to put a big question mark beside his name on the health account.

Losing weight along these lines is always a bad sign.

He's perhaps the most underrated CEO in the world, too. Look at the companies he's built up: Pixar & Apple & NeXT. Look at their products and their balance sheets. Pretty amazing.

When he was away from Apple, it was a disaster.

I like Apple, but without Jobs I couldn't buy.

I don't know him, but I wish him well with his health.

Jan 03 01:52 PM

[Evan Grey Owl:]

If the incredibly RUDE, INVASIVE people that are OBSESSED with how many millimeters of fat is under Jobs' skin, compared to the last time their beady little vulture eyes were fixated on him, would just buzz-off, I am sure his health and morale would improve. No sane person would subject themselves to the crass and vulgar oogling of one's body that certain rude, big-mouthed "Jobs' watchers" think they have a right to engage in. Such people are no better than stalkers. Ditto the media that behave this way. Shenzi's is what they are. And you don't want to know what that world means.

Jan 03 02:20 PM

[Evan Grey Owl:]

Correction:
Shenzies is what they are. And you don't want to know what that word means.

Jan 03 02:24 PM

[TA:]

Apple without Jobs is like Berkshire without Buffett

I don't want to be invested in either

Jan 03 10:53 PM

[blonde molly:]

I own Apple and I'm definitely worried about SJ's health. I hope he's not sick even if I sell my stock.

Blonde Molly

Jan 04 06:55 PM

[gooddog2:]

Nobody gets out of this world alive, I wish S. Jobs all the best and health too. If everyone thinks S. Jobs is a very smart man why don't you think that he is smart enough to pick a team that can carry on without him? I am sure that he has a second in place just in case he wants to retire ( I don't know what his age is, but there is much younger people that has retired with much less in the bank or pasted on to the next world).
I am long on apple, and if I had more money I would buy more.

Jan 05 02:57 AM