Response to the following problem:
On February 25, 2009, Gabriel Madway wrote an article entitled "Apple Investors Get No Satisfaction on Jobs," which appeared on Reuters.com. The article raises concerns about Steve Jobs's health and the possible reoccurrence of his pancreatic cancer. The following excerpt is taken from the article:
Jobs-who co-founded Apple and is credited with transforming it into a consumer juggernaut after returning as CEO a decade ago-announced . . . he would take a five-month leave of absence, handing over the reins of the firm and saying his health problems were "more complex" than originally thought
Answer the following questions:
1. Is the article favorable, neutral, or unfavorable regarding future prospects for Apple Inc.?
2. Assuming you owned stock in Apple Inc., would you sell your stock based only on this article? If not, what additional information would you want?
3. Would it be a prudent investment strategy to rely only on published financial statements in deciding whether to invest in a company's stock?
4. What sources do you think financial analysts use in making investment decisions and recommendations?