How An Apple Rumor Can Swing A Failing TV Maker’s Stock Value

No, this isn't Apple's iTV.

No, this isn’t Apple’s iTV.

You probably haven’t heard of a German company called Loewe. The high-end TV maker hasn’t done so well at selling ultra-expensive HDTVs as of late, and its peripheral business isn’t doing so hot either.

It’s amazing to see how Apple can affect the stock value of another company. After a debunked report from last year claimed that Apple was planning to buy Loewe, yet another acquisition rumor has sent Loewe’s stock soaring to new heights. And just like the first time, the situation is all smoke and no fire.

Apple buying out any company is a big deal, but it’s especially a big deal if that company happens to specialize in making TVs. The rumor mill has been predicting an Apple HDTV for years, so anything that could connect Apple to that drumbeat is worth examining. But in the case of Loewe, all we’ve gotten is some insane stock manipulation.

The first Loewe acquisition rumor was incorrectly reported by AppleInsider in May of last year. Loewe flat-out denied the rumored bid of $113 million (a 48% premium). Apple declined to comment, like normal. The debunking failed to keep Loewe’s stock value from quickly hitting a 10-month high.

This time around, Loewe’s shares have jumped over 40% today due to a rumor that says Apple will make a bid to buy the company again. “Apple supposedly wants to bid 4 euros a share for Loewe,” according to an anonymous “trader.” The rumor has caused Loewe’s legitimate share value to hit nearly 4 euros, which is ridiculous when you consider how the rumor is completely baseless.

Loewe reported 29 million euros in losses last year, and its market cap was around 37 million euros before this latest Apple rumor hit the wire. Even at Loewe’s post-Apple-rumor valuation of 53 million euros, buying it out would be a drop in the bucket for Apple’s $100+ billion cash hoard. But an acquisition still doesn’t make sense. Apple has no reason to buy a luxury TV maker from Germany that’s bleeding money.

The stock swing is ironic when you consider how Apple has taken such a pounding on Wall Street in the last several months. Apple itself is disappointing investors, but anything the company is rumored to touch turns to gold. Makes perfect sense.

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  • Norbs

    iWatch guys! iWatch!!! Bigger iPhone bro, called the iPhone Math because that makes sense! Cheaper iPhone!

    Some ridiculous shit gets spewed out and just about every media company posts the story no matter how little substance actually backs it.

  • hanhothi

    Why do you plonkers keep calling it an iTV. It will NEVER get called an iTV because Apple would have their butts sued by ITV. What standard of reporting is this? Hu???

About the author

Alex HeathAlex Heath has been a staff writer at Cult of Mac for over two years. He is also a co-host of the CultCast. He has been quoted by places like the BBC, KRON 4 News, and books like "ICONIC: A Photographic Tribute to Apple Innovation." If you want to get in touch, additional contact information is available on his personal site. Twitter always works too.

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