This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple's Obit Isn't Ready to Run

Updated from 9:37 a.m. EST

Do you own the stock of a public corporation because of what the company does or because of the person at the top?

Perhaps you look at Johnson & Johnson (JNJ - Get Report), and think, "This company makes things that are in my medicine cabinet, but that's neither here nor there. I really trust William Weldon."

Maybe you see an article on Novartis (NVS - Get Report) and say to yourself, "The company's drugs might or might not be successful. I don't care that much. What matters is Daniel Vasella."

Or, when you think about Tootsie Roll (TR - Get Report), you say, "I'm not sure people will be buying candy in the coming months, but that's irrelevant. Melvin Gordon has my admiration."

Is this how you make most of your investing decisions? Probably not. For most investors, the choice to buy shares rests on the belief that a company, because of its products or services, is poised to be profitable, have growing revenue and see its stock price appreciate.

That should be no less true for Apple (APPL) than it is for 3M (MMM - Get Report) or Union Pacific (UNP - Get Report) or Arctic Cat (ACAT - Get Report).

But we know that isn't the case. What's different among all the aforementioned companies is that one of them has a celebrity CEO, a man who is so closely identified with the success of the business that many investors cannot fathom the idea of the operation going on without him. Of course, that person in this case is Steve Jobs, the CEO of Apple, the maker of the iPhone, the iPod and the iMac.

Can Apple thrive without Steve Jobs?

The company will remain successful either way
If he doesn't return from leave, the company will suffer
What Apple needs now is a clear succession plan

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.20 -0.84%
ACAT $36.65 1.40%
JNJ $100.30 0.16%
MMM $163.46 0.54%
NVS $100.38 0.82%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,062.25 +6.10 0.30%
NASDAQ 4,897.8230 +34.4610 0.71%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs