Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James Yu who wrote (8147)	2/3/1998 8:02:00 PM
From: Mike Connolly	Read Replies (1) \| Respond to of 213176

Was surprised by Michael Murphy's bearishness in yesterday's Newsbyte article: Message 3326721 He seems to be contradicting his own measure of what constitutes a "great growth-flow stock" (price ö growth flow, where g.f. = eps + r&d/share). Sent him the following email: To Michael Murphy (publisher of California Technology Stock Letter): I noted your comments in a Feb. 2nd Newsbytes article, disparaging Apple's prospects due to R&D being <5% (actually 5.0% in Q1). On p. 137 of your recent book on high-tech investing, you discuss price-to-growth-flow ratio (P/GF): "Anything under 8x starts to get our attention, and under 5x we really get interested." Apple's P/GF based on annualized Q1 results is 4.7 [based on $18-1/2 share price] (5.2 w/ fully diluted shares). How do you reconcile this bullish ratio with your bearish opinion?