Apple Inc (AAPL)

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08:58 AAPL Apple Computer: Color on options investigation (58.97 )

Piper Jaffray says that they have gone back on Apple (AAPL) and found 1 of 13 grants from 1997-2001 to be noteworthy, issued 5 yrs ago to Steve Jobs. Firm says this does not impact AAPL's underlying fundamentals and would view the pullback as a buying opportunity ahead of what they believe will be favorable back-to-school and holidays periods for AAPL... Soleil says the irregularities with the issuance of stock options during 1997 through 2001 obviously creates uncertainty in the stock. Firm assume that the SEC will likely follow up with subpoenas for information. Co told firm that they were working as quickly as possible to investigate and provide information to investors. Firm expects the stock to be choppy as we get closer to earnings and with today's announcement. However, we continue to believe that Apple should have a strong 2H following the migration of its product line to INTC and that the stock provides one of the best growth opportunities in large-cap tech... AmTech says AAPL announced that during its internal investigation, it discovered potential irregularities related to the issuance of certain stock option grants made between 1997 and 2001, including one to Steve Jobs that was not exercised but converted into restricted stock in March 2003. It also announced that it has proactively sent its findings to the SEC. Firm believes that even in the worst case scenario Steve Jobs is not liable. The reason being the compensation committee at AAPL is run by an independent board who are not employees of AAPL.