Apple News, Analysis and Podcasts

Yesterday the world read about Steve Jobs "stepping back" from the day-to-day operations at Apple to tend to his health.  Tim Cook, who took over for Steve when Steve took a leave of absence to fight pancreatic cancer, is back at the helm.

However, this time we have not been told what specific ailment has caused Steve to step back to focus on his health. Is it a return of the cancer? Is it a virus or bacterial infection (since his immune system may be weak)? We don't know. What we do know is that Jobs will keep his CEO status and remain involved with Apple at the strategic level but not the day-to-day. Yesterday in Germany the knee-jerk reaction to this news dropped AAPL 8%. Today in the U.S. the reaction is similar, but also somewhat muted.

After the initial "OMG Steve's DYING!" hysteria slows, the U.S stock price may begin to level off. This should make AAPL a good buy. Why? Because nothing will really change at Apple. Steve will still be involved in the strategic decisions and Tim Cook can manage the day-to-day with little trouble. Over the past 13 years Jobs instilled a culture of secrecy and excellence in the day-to-day. The real value Steve brings to Apple is his vision.

What's next? What will Purple Cow the competition? The ability of Jobs to set a direction for Apple and knowing when to say "no" is unparalleled. By Job's own admission he is just as proud of what Apple has decided NOT to do. That is a real discipline and a real focus about understanding what is important in the long-term and where Apple can win — in a big way.

So is now the time to buy APPL stock? We think so. With the iPad2, iPhone 5 and Mac OS X Lion on deck, the stock might drop a bit in the next day or two but within the next year the stock should be at $450 USD/share. Go Apple go!

(Disclaimer: In no way are we three guys at T-GAAP financial advisors. We are only giving our personal opinion here. Do as you will.)

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