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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Dennis who wrote (25395)	7/10/1999 12:42:00 PM
From: Andrew Danielson	Read Replies (1) \| Respond to of 213173

Earnings next year Earnings are low next year because Apple will be taxed at a higher rate when they run out of losses that had been carried forward from previous years to offset profits for tax purposes. This is one of the reasons I hesitate to hold this stock next year. Year over year earnings comparisons will become extremely difficult. (incidentally, this is one of the reasons that many people claim Apple will soon be initiating a stock buy-back program to lower the float a bit and make EPS look better) Of course, it's all perception. Apple's growth remains intact despite being hidden by the taxation issue, and will re-emerge once Y-o-Y comparisons compare apples to apples (fully taxed to fully taxed years). But that's why I try to look at this year's earnings as if Apple were being fully taxed this year as well. Although I haven't done the calculation myself, an article on the subject I read fairly recently suggested that taxation would've put this year's earnings more like in the $2.00-$2.10 range. These are the numbers I use to calculate Apple's PE, PEG, etc. Andrew Danielson