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

To: pyslent who wrote (169994)	5/29/2014 12:34:54 PM
From: Ryan Bartholomew	Read Replies (3) \| Respond to of 213176

These are better-than-Apple profit margins (40%). If the business was capable of generating $800M in earnings, it was a steal at $3B. I agree. If they can manage $1B in profits for 3 years, it pays for itself and then some. Their model is such a perfect fit for Apple in the sense that they are selling high-margin fashion, not value. Their challenge is similar as well: how long can they keep it up? Earlier, someone cited an article that included this quote: "But the real audio cognoscenti wouldn't touch them with a barge pole," says technology blogger Tom Cheesewright. "Ultimately they're a fashion brand." If that's true, they may not keep it up for long, as the Apple involvement is likely to bring more of the audio cognoscenti into the fold.

To: pyslent who wrote (169994)	5/29/2014 1:06:31 PM
From: 16yearcycle	Read Replies (2) \| Respond to of 213176

Estimates still less than 48 for next year but Beats might get analysts to raise that toward 49. I worry that we need estimates to get to at least 52 for 2015 pretty soon after the iphone 6 launch to justify a pre split price of 650-700. I have little faith that the street thinks aapl deserves a current pe of 15 before the end of this year, unless they see something like 52 in 2015 followed by 60 in 2016. Can estimates get to 52 and 60 by year end? I think there would be a small chance of that but it's possible. That, imho, would justify 780 before year end.