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Technology Stocks : Apple Inc.

AAPL 278.37

+0.1%

Dec 12 3:59 PM EST

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To: happy_camper who wrote (78557)	10/4/2008 8:16:51 PM
From: Win-Lose-Draw	1 Recommendation Read Replies (2) of 213176

Thanks for the well reasoned counter argument. In sharp recessions, S&P has historically sold at single-digit PE. Market is currently around 19-20. Factor in compression of earnings growth - or god forbid, an actual, small decline in earnings - and you're looking at a potential S&P level of 500/600. If the broader markets are anywhere near those levels, you're looking at a stock that may well be selling for very little premium over cash (should be $50/share in ~18/24 months). Which incidentally I think - and this is IMO stuff - is the plan for the cash. Namely, I expect AAPL to be taken private.

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