Apple Fervor Puts Brokers On Spot

The Wall Street Journal

October 10, 1980

EVERY SPECULATOR IN HOT NEW ISSUES WANTS A BITE OF APPLE--APPLE COMPUTER INC.--BUT MOST WILL BE LUCKY TO GET EVEN A BIT.

THE PERSONAL COMPUTER MANUFACTURER'S FIRST PUBLIC SALE OF STOCK SEEMS LIKELY TO BECOME ONE OF THE HOTTEST OFFERINGS OF ALL TIME. INDICATIONS THAT APPLE MIGHT SELL ONLY A SMALL AMOUNT OF ITS SHARES HAVE ONLY SERVED TO GENERATE MORE DEMAND.

A DATE HASN'T BEEN SET FOR THE APPLE STOCK SALE. LATELY, SHARE PRICES OF NEARLY ALL COMPANIES IN THE PERSONAL-COMPUTER BUSINESS HAVE HIT RECORD LEVELS. NEW ISSUES OF COMPUTER AND OTHER HIGH-TECHNOLOGY STOCKS SOLD PUBLICLY IN THE PAST 12 MONTHS HAVE SOARED IN PRICE BY AS MUCH AS 50% OR MORE ABOVE INITIAL OFFERING PRICES.

THE DEMAND FOR APPLE IS ESPECIALLY KEEN BECAUSE THE COMPANY RANKS WITH TANDY CORP., MAKER OF THE RADIO SHACK'S TRS MODEL PERSONAL COMPUTERS, AS A LEADER IN THE INDUSTRY. SOME PEOPLE EXPECT APPLE SALES TO REACH $300 MILLION NEXT YEAR FROM SOME $150 MILLION THIS YEAR AND ONLY $7 MILLION TWO YEARS AGO.

ALL BUT A MINORITY OF WOULD-BE APPLE BUYERS SEEM LIKELY TO COME AWAY FROM THE PUBLIC OFFERING EMPTY-HANDED. THE SUPPLY IS EXPECTED TO BE SO SCANT THAT BROKERS ALREADY ARE DEVISING ALLOCATION METHODS. AT A MINNEAPOLIS BROKER'S OFFICE, FOR EXAMPLE, CUSTOMERS' MEN WILL DRAW STRAWS TO DETERMINE WHO GETS THE OFFICE'S ALLOCATION. THE INVESTORS WHO DO GET TO BUY THE STOCK ARE LIKELY TO BE WELL-HEELED CUSTOMERS OF LONG STANDING.