Earlier this month, I did a blog entry looking at why Steve Jobs' health was an issue for investors. It boils down to one simple equation: Jobs is Apple's most important asset and his health affects the stock price.
Notwithstanding Jobs taking several months off to sort out his health problems, Apple's shares soared nearly 6% when the company suggested it had a recession proof formula with its iPod and iPhone helping generate record sales and profits.
Obviously, investors don't seem to care that Bloomberg reports that the Securities and Exchange Commission is investigating Apple's disclosures about Steve Jobs' health issues. The bottom line, according to that report, is whether investors were misled. But if the company's share price is anything to go by, who cares?
Still, it's a bit of a worry when you read the statement released earlier this month by Apple's directors. "As we have said before, if there ever comes a day when Steve wants to retire or for other reasons cannot continue to fulfill his duties as Apple's CEO, you will know it. Apple is very lucky to have Steve as its leader and CEO, and he deserves our complete and unwavering support during his recuperation. He most certainly has that from Apple and its Board."
The unanswered question is what happens if the unthinkable happens and Jobs doesn't come back, or if his return is only temporary. Has the board done its job and actually worked through that hypothetical? So far, there is no sign that's happened.
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