Apple SVP of Internet Software and Services Eddy Cue Cashes in $8.8 Million in Stock

[Tiger8]

Originally Posted by kas23

Does it make sense that they are cashing in their stock, a stock at a relative low (down about 20% from $700), just so they can avoid a 5% increase in taxes?

I am sure a handsomely paid accountant crunched the numbers and decided now is the time to sell.

[Builddesign]

...now that's a Holiday bonus.

[Intarweb]

I wonder if he knows something is up in Cuperto. Apple was down nearly 6% earlier and is hovering down 4%.

[Plutonius]

Originally Posted by kas23

Does it make sense that they are cashing in their stock, a stock at a relative low (down about 20% from $700), just so they can avoid a 5% increase in taxes?

Many financial experts are predicting a recession after we go over the fiscal cliff at the end of the year. All stock prices including Apple would go considerably lower. Most likely, the Apple employees who are selling their stock believe that selling now is better then paying the tax increase and hoping that the Apple stock price will go higher (in a recession it will fall).

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Originally Posted by Intarweb

I wonder if he knows something is up in Cuperto. Apple was down nearly 6% earlier and is hovering down 4%.

I'm not sure if somethings up but many people are getting out of the market (not just Apple).

[ksnell]

Yes, they probably want to be taxed at the current corporate gains rate now. However, to my knowledge, this just means that their unrealized gains become realized and those gains are taxed (at the lower rate). They can then repurchase the stock if they choose, at which point their stock basis essentially resets to new market value (because they were just taxed on the gains up to that amount) so there will be less future gains taxed at the new (higher) rate in the future.

[kas23]

Originally Posted by Plutonius

Many financial experts are predicting a recession after we go over the fiscal cliff at the end of the year. All stock prices including Apple would go considerably lower. Most likely, the Apple employees who are selling their stock believe that selling now is better then paying the tax increase and hoping that the Apple stock price will go higher (in a recession it will fall).

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I'm not sure if somethings up but many people are getting out of the market (not just Apple).

Yes, I agree with this reasoning. Whether or not we actually go over this fiscal cliff is another story. Either way, cliff or no cliff, I don't think the economy is going to respond favorably. Those of you nearing retirement better get your portfolios in order ASAP. Those who are not, get ready for an excellent buying opportunity.

[JHankwitz]

Originally Posted by Shasterball

No, they are trying to avoid possible/likely tax in creases in a couple of weeks.

Correct. The masses voted for tax & spend, so investors need to make adjustments just like we all should be doing. I'm not receiving any entitlements, so I just need to bend over and take it. Looks like the hard earned money I saved up or a new iMac will now be used to support the new redistribution of wealth society.

[ixodes]

Originally Posted by Shasterball

????? No, they are trying to avoid possible/likely tax in creases in a couple of weeks.

That's exactly what I was referring to.

[kas23]

Apple stock falls 6.6% right after Eddy cashes in. Hmmm.

[kas23]

Originally Posted by JHankwitz

Correct. The masses voted for tax & spend, so investors need to make adjustments just like we all should be doing. I'm not receiving any entitlements, so I just need to bend over and take it. Looks like the hard earned money I saved up or a new iMac will now be used to support the new redistribution of wealth society.

Thank you for my new iMac Mr Hankwitz, and my new pair of $200 basketball sneakers.

[MacDav]

Originally Posted by kas23

Does it make sense that they are cashing in their stock, a stock at a relative low (down about 20% from $700), just so they can avoid a 5% increase in taxes?

If you try and second guess what they are up to you'll go crazy. Wait till the end of January next year, hopefully Apple will have a blowout 4th quarter and we'll see $700 again. If not, oh well. When you own 10,000 or more shares of Apple stock you "Think Different" than the rest of us.

[Shasterball]

Originally Posted by ixodes

That's exactly what I was referring to.

Aha -- I thought perhaps the hammer at Apple was falling. I'm very happy their stock is under pressure. Perhaps we will see some more innovation now and less iteration.

[seveej]

Originally Posted by MacRumors

Apple Senior Vice President of Internet Software and Services Eddy Cue has decided to sell off 15,000 shares of his stock for about $8.8 million, according to a recent regulatory filing. He sold off his Apple stock for about $583.99 a share.

Dear Eddy,

in case you are
a) reading this and
b) wondering how to use the money,

Please remember there are a lot of people out there who could really used things like:
- food
- medicine
- shelter
etc.

Thank you for your time, and have a nice christmas.

RGDS,