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

To: slacker711 who wrote (54430)	7/12/2006 8:24:48 PM
From: Cogito	Read Replies (1) \| Respond to of 213184

>>Have you looked at the PE compression that other tech stocks have gone through in the last two months? I'm not sure if it will happen, but it is at least a possibility. They either need to get a rejuvenated iPod lineup out in the next couple of months or show some evidence that Mac sales are gaining share. If neither of those occurs, then further PE compressions seems likely.<< Slacker - When earnings are reported next week, the P/E ratio will decline due to an increase in the E (earnings), unless they report less than 37 cents. That's unlikely. If they report 47 cents, flat from the last quarter, then the P/E ratio at today's price would be about 25. So I guess you're right, a P/E of 20 is not that far fetched. But I still don't see it happening. I think there will be ample evidence of good Mac sales in the upcoming report. IPods are a question mark, and forward guidance is always critical. If there is any kind of delay in new iPods, it will push out earnings increases by only one quarter. So I'll continue to hold, even though I am now under water. After all, the only two prices that matter are the price at which you buy and the price at which you sell. What happens in between is immaterial. - Allen

To: slacker711 who wrote (54430)	7/13/2006 12:25:06 AM
From: Lizzie Tudor	Respond to of 213184

Have you looked at the PE compression that other tech stocks have gone through in the last two months? I'm not sure if it will happen, but it is at least a possibility. They either need to get a rejuvenated iPod lineup out in the next couple of months or show some evidence that Mac sales are gaining share Totally agree. We are going to single digit PEs on many tech stocks. MSFT has a PE of 16 now, intc 13. Software is higher- ADBE 30, INTU 25. Internets the highest, being the cash cows they are, anywhere from 30-60. The good news for apple is they are gaining share. This will make itself clear in a few weeks or mos. THe macbook is by far the most popular laptop in the industry now. Apple can build this brand for years now. I am looking for 3 million macbooks or derivatives in 2007 sometime.