JP Morgan Analyst Fired for iPhone Nano Report?

MacRumors

macrumors bot
Original poster
Apr 12, 2001
46,746
8,952


DealBreaker claims that "according to the rumor mill" Kevin Chang was fired over the iPhone Nano report that was published last week.

The report gained a lot of press last week and was based on unspecified "sources" as well as a recently published patent application, but a followup JP Morgan report essentially retracted the original report.

Article Link
 

nagromme

macrumors G5
May 2, 2002
12,546
1,186
They can't go firing technology analysts for making stuff up out of thin air. Where would THAT witch hunt end? :p
 

fixyourthinking

macrumors 6502a
Oct 24, 2002
665
0
Greenville SC
I hope it doesn't end

To Nagromme ...

I hope it never ends - it's time to put a stop to these analysts that put false hopes on rumor mill sites like Think Secret ... it almost makes you wonder sometimes if Think Secret doesn't get some payola.
 

AlBDamned

macrumors 68030
Mar 14, 2005
2,626
0
To Nagromme ...

I hope it never ends - it's time to put a stop to these analysts that put false hopes on rumor mill sites like Think Secret ... it almost makes you wonder sometimes if Think Secret doesn't get some payola.
True. You only have to look at Mac Guides to see most "analysts" are hopelessly wrong most of the time. The only one that seems to talk some sense is Shaw Wu, but even he's not that accurate.
 

WildCowboy

Administrator/Editor
Staff member
Jan 20, 2005
17,232
1,124
Analysts are always making stuff up, and that's what their employers want them to do. In fact, the firms are famous for having three analysts covering each firm...one bullish, one neutral, and one bearish. That way they can always trot out an analyst for the media to talk to who "correctly predicted" what was going to happen. I'm surprised they axed him (if they actually did)...he's doing his job, but he may have made up just a little too much.
 

siurpeeman

macrumors 603
Dec 2, 2006
6,311
18
the OC
To Nagromme ...

I hope it never ends - it's time to put a stop to these analysts that put false hopes on rumor mill sites like Think Secret ... it almost makes you wonder sometimes if Think Secret doesn't get some payola.
i completely agree. with the exception of the prediction from the morgan stanley analyst about the iphone (mostly but not all true), it's utter crap, and i can't believe these people get paid for what they do.
 

CalBoy

macrumors 604
May 21, 2007
7,849
36
I'm surprised they axed him (if they actually did)...he's doing his job, but he may have made up just a little too much.
Or maybe he was a little too right on the money;) For all we know, Apple is a client of JP Morgan, and Jobs didn't like this rumor getting leaked.

However, analysts are in the end somewhat useless. They'll tell you that a meteor is coming after the crater has already stopped smoking.
 

entropys

macrumors 6502a
Jan 5, 2007
543
636
Brisbane, Australia
Or maybe he was a little too right on the money;) For all we know, Apple is a client of JP Morgan, and Jobs didn't like this rumor getting leaked.......
That may be the only reason I could think of to justify his sacking (publicising insider info). Wouldn't there be a clearance process before these things are put out? If so, who approved it's release? Why aren't they sacked? There must be more than meets the eye. On the one hand it's the scenario Calboy suggests, or on the other he was also sleeping with the boss's wife/daughter.

On the third hand, maybe he hasn't been sacked at all.
 

edesignuk

Moderator emeritus
Mar 25, 2002
19,239
1
London, England
meh, as others have said. what do you expect? they're analysts! it's their job to research and come up with some nonsense in the hope of making money somehow. which is largely why no one should pay much attention to them :p
 

CalBoy

macrumors 604
May 21, 2007
7,849
36
Isn't this a little like firing a prostitute for having sex?
Best quote I've read all day!

I'm just wondering if the false rumor about the iphone nano had any effects on apple's stock price. Maybe JP Morgan planned to sell some and tried to "adjust" a bit.
It did. Apple stock went up a few dollars on the news, and closed even higher on Friday because people were sure the rumor was true. Either way, Apple's earnings report will be out soon, and I'm sure that's going to bump the stock price.
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,892
1,466
Palookaville
It did. Apple stock went up a few dollars on the news, and closed even higher on Friday because people were sure the rumor was true. Either way, Apple's earnings report will be out soon, and I'm sure that's going to bump the stock price.
One way or another. My rule of thumb is that unless Apple beats consensus earnings expectations by at least 10%, they will get hammered in the market.

Keeping in mind also that the iPhone was released on the last business day of the quarter, so we won't be seeing any numbers reflecting the iPhone's impact on Apple's bottom line until October.
 

CalBoy

macrumors 604
May 21, 2007
7,849
36
One way or another. My rule of thumb is that unless Apple beats consensus earnings expectations by at least 10%, they will get hammered in the market.

Keeping in mind also that the iPhone was released on the last business day of the quarter, so we won't be seeing any numbers reflecting the iPhone's impact on Apple's bottom line until October.
Oh I think Apple's done a lot better than 10%. Even without the iPhone, Mac sales are still high, and with the student sale going on now, a lot of new grads are going for Mac. While most of those sales will be in the next quarter, there will still be some reasonable spillover into this quarter.
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,892
1,466
Palookaville
Oh I think Apple's done a lot better than 10%. Even without the iPhone, Mac sales are still high, and with the student sale going on now, a lot of new grads are going for Mac. While most of those sales will be in the next quarter, there will still be some reasonable spillover into this quarter.
My rule is at least 10% better than analyst's expectations, whatever they happen to be (I haven't seen any predictions for the quarter yet). If the consensus of expected profits is $0.50/share, they'd better report at least $0.55 EPS, or the stock will be drubbed for at least a day or two. This rule has held pretty well over the years. In Apple's case, anything short of perfection makes the markets very grouchy.
 

CalBoy

macrumors 604
May 21, 2007
7,849
36
My rule is at least 10% better than analyst's expectations, whatever they happen to be (I haven't seen any predictions for the quarter yet). If the consensus of expected profits is $0.50/share, they'd better report at least $0.55 EPS, or the stock will be drubbed for at least a day or two. This rule has held pretty well over the years. In Apple's case, anything short of perfection makes the markets very grouchy.
I still think Apple will do just fine. I just have a feeling that this quarter has been good for Mac sales...oh well, we'll know at the end of July(I think).
 

Butthead

macrumors 6502
Jan 10, 2006
440
19
That may be the only reason I could think of to justify his sacking (publicising insider info). Wouldn't there be a clearance process before these things are put out? If so, who approved it's release? Why aren't they sacked? There must be more than meets the eye. On the one hand it's the scenario Calboy suggests, or on the other he was also sleeping with the boss's wife/daughter.

On the third hand, maybe he hasn't been sacked at all.
If so, then he was definitely "sacked" alright, U go grrrl! ;) Meebe he was being sacked by both the boss's wife & daughter , the ultimate forbidden fruit :apple:.

Steve Jobs upset over a leak at Apple? How would that ever result in someone being fired for reporting it? You usually kill the leak-ee of the message, not the messenger.

Perhaps this guy was not only making it up, but also held a certain amount of Apple stock which he convienently sold when the stock peaked as a result of this rumor, that's illegal and could be a reason for termination?

Yeah, what a lame rumor, I think I should be a paid analyst speculating on what Apple will do next. Why, I already have the Merom XE confirmed rumor going, why not pay me for this equally plausible scenario I have concocted ;) ?
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,892
1,466
Palookaville
I still think Apple will do just fine. I just have a feeling that this quarter has been good for Mac sales...oh well, we'll know at the end of July(I think).
They're already doing great, so fine isn't going to be good enough. ;)

Perhaps this guy was not only making it up, but also held a certain amount of Apple stock which he convienently sold when the stock peaked as a result of this rumor, that's illegal and could be a reason for termination?
I'm not sure I'd say that AAPL has peaked, or that this particular rumor added much to the current enthusiasm for the stock. Probably the consumer satisfaction story published last week in USA Today contributed more.
 

CalBoy

macrumors 604
May 21, 2007
7,849
36
They're already doing great, so fine isn't going to be good enough. ;)
Ok, then Apple is doing AMAZINGLY well. So well in fact, that soon Apple will buyout Microsoft and close down the company:p Seriously, I get what you're saying, but I think that Apple will beat analyst expectations by more than 10%.
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,892
1,466
Palookaville
Ok, then Apple is doing AMAZINGLY well. So well in fact, that soon Apple will buyout Microsoft and close down the company:p Seriously, I get what you're saying, but I think that Apple will beat analyst expectations by more than 10%.
Well I'm hanging tough with my shares, so I suppose I agree. :)
 

CalBoy

macrumors 604
May 21, 2007
7,849
36
Well I'm hanging tough with my shares, so I suppose I agree. :)
You're lucky. My CD is going to end in October/November, and I'm not sure where to put my money. Had a bought AAPL last year, I would have been sitting pretty right now.
 

Yankees 4 Life

macrumors 6502a
Jun 25, 2007
526
0
College Station, Tx
They're already doing great, so fine isn't going to be good enough. ;)



I'm not sure I'd say that AAPL has peaked, or that this particular rumor added much to the current enthusiasm for the stock. Probably the consumer satisfaction story published last week in USA Today contributed more.
i'm hoping that when they peak, they do a stock split like they did a few years ago...
 

IJ Reilly

macrumors P6
Jul 16, 2002
17,892
1,466
Palookaville
i'm hoping that when they peak, they do a stock split like they did a few years ago...
I'm hoping the stock doesn't peak, which means it then starts going down. As for splits, if past history is any guide, I presume one is coming, but since they don't really mean anything for the value of investor's holdings I'm not holding my breath.
 

DropDeadGorgias

macrumors newbie
Jun 20, 2007
3
0
I kind of doubt this guy was fired- this post doesn't have any credible sources. Still, I hope there was some kind of acknowledgement of the extremely bad press he brought to his firm. Furthermore, it was this kind of unchecked rampant rumormongering that led to the stock price tumbling a few months ago because of a fake e-mail report on a blog (http://www.macobserver.com/stockwatch/2007/05/17.1.shtml). This kind of volatility goes both ways with a fan-base stock like apple.