Apple shares fall most in 8 years

Oakland Tribune, Sep 29, 2008

Apple Inc., the best-performing technology stock last year, dropped the most in eight years in Nasdaq trading after a Morgan Stanley analyst said price cuts will curb profit growth. Analyst Kathryn Huberty in New York lowered her estimate on the stock by 35 percent Monday, to $115 from a previous target of $178. The shares fell $22.98, or 18 percent, to $105.26, the biggest loss since Sept. 29, 2000. They are down 47 percent this year. Apple, which gained last year on rising sales of the Macintosh computer and optimism for its iPhone handsets, will be hurt by slowing orders, Huberty wrote in a report. Apple will have to cut prices to compete this holiday season, weighing on earnings per share, she said.

Also, Mountain View-based Google Inc. dropped below $400 on the Nasdaq for the first time in more than two years amid concern that slowing U.S. and European economies will curb sales growth. Google fell $50.04, or 12 percent, to $381. The shares last closed below $400 on Sept. 20, 2006.

Staffing

Walnut Creek-based Westaff Inc. announced a definitive agreement for the sale of its Australia and New Zealand subsidiaries as part of a strategy to focus on its businesses in the United States. Humanis Group Ltd. is buying the units. Westaff, a staffing services company, said the transaction is worth about $15 million in cash and debt. The deal consists of $13.3 million in up-front cash and $2.5 million in a promissory note due one year after closing. Westaff expects to net $7.5 million after closing costs, taxes, and other expenses and fees.

Online trading

Charles Schwab & Co., the largest online brokerage by client assets, may record a pretax charge of $75 million for debt linked to Lehman Brothers Holdings Inc. and Washington Mutual Inc., which collapsed this month. The exact cost will depend on the value of Lehman and Washington Mutual notes as of Tuesday, the San Francisco- based company said today in a regulatory filing. The notes, with a combined value of $89 million, were held by Schwab's bank unit.

Compiled from staff and wire reports. Got Bay Area business news? Reach Drew Voros at 925-943-8099 or dvoros@bayareanewsgroup.com.