To: Phillip C. Lee who wrote (7072 ) 12/29/1997 11:21:00 AM From: Alomex Respond to
APPLE COMPUTER INC./Stock of the Week Beyond that, there are several compelling reasons to invest in the company. First of all, they have done away with the fat and dead wood that put a strain on day-to- day operations. The cost-cutting measures of (interim chief executive) Steve Jobs were long overdue, and have shaped the company into a more focused business. On the product front, the company's new G3 line of Macintoshes should be hot sellers. If Apple gets into the network computer market, as is widely expected, it would be a good thing for their education market. There is also a good chance that Apple may cut a deal with Oracle to use Oracle's sales force to sell Macs to corporations. Finally, there is the possibility that Apple may be acquired. Any such rumors would pump up the company's stock price. The stock has nowhere to go but up. David Coursey, Upside magazine columnist, San Mateo If you truly believe in Apple, then buy it and take the risk. If you don't, buying the stock will be a frustrating experience. It's like betting on a dysfunctional company. Until the day comes when everyone decides that Apple is wonderful again,then the stock will continue to suffer. Buying its stock is like taking care of a GigaPet that needs to pampered all the time. Apple hasn't given anyone any reason to believe it is off the critical list. Come on, the market cap ($1.62 billion) is less than a fourth of sales ($7 billion). That is a woeful ratio. This stock reacts in a volatile manner to any news -- both good and bad. The Microsoft investment (in August) was a grand stroke that propped up the stock, but the company is reaching a point where fewer people care about it. The CEO search has been sputtering. Apple seems to be having a difficult time finding one. Meanwhile, the ''Think different'' ad campaign features a bunch of dead people who never used the Mac or heard of it. Steve (Jobs) seems to think it's 1985 all over again.
