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Technology Stocks : Apple Inc.
AAPL 278.79-0.7%Dec 5 3:59 PM EST

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To: Phillip C. Lee who wrote (8687)2/22/1998 3:56:00 PM
From: Bill Jackson  Read Replies (2) of 213173
 
Phil; If the sales stay stable and the margins too, then the profits will be similar for the next quarters with a subsidence as educational buying tails off at school years end(college and High schools staggered a bit give a slight soft landing with 2 drops as each group stops buying for the year and 2 slight increases just before due to budget use it or lose it effect.

This projects to a revenue neutral spring, with a late spring slump, and another one a month later as the summer doldrums settle in.

Of course it ramps back up in Aug/Sept and then the Christmas rush completes the cycle.

Thus I think the share price will stay where it is for Feb/Mar and then settle back a bit as the two educational year ends occur and on into the summer slump.

For the stock to rise into the high 20's there needs to some kind of takeover or some kind of projected sales increase with profits to go along with it. I see no increase, just the steady seasonal cycle, and hopefully some year on year gains. I suspect that Apple will stay profitable but still suffer share erosion, and thus the share price will fall this summer back yo the 15's and come back up next fall to the 20's??

If we get a bear market this summer Apple could head towards 10+.

Bill
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