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

To: Eric Yang who wrote (11754)	4/17/1998 8:12:00 PM
From: Phillip C. Lee	Read Replies (1) \| Respond to of 213176

"Don't mean to be a eager beaver but I took a look at the numbers for Q3. The consensus estimate for Q3 is currently at $0.24. I haven't done a detailed analysis yet but using some rough estimate it looks like Apple should be able to more than double that this quarter." I think the real value will be reflected on the price starting from next Monday afternoon after all options are cleaned out. It is a safe bet on Apple now as opposed to prior-reports. Besides, the revenue will grow from Q3 and net will increase accordingly. I wouldn't believe those analysts won't upgrade Apple in the next couple of weeks. Internet-related stocks will be cooled down within a week, and the attention will again back to the pc-related stocks. In the past two days, I believe the shorts have covered back a significant number of shares with an elegant way. I was surprised at their market-controlling capability. Well, I have no doubt for their ability of price manipulation, but still make me feel how unfairly the market behaves within a short term (e.g. 1-2 days) when the big guys interfered. Holding longer is the only way to conquer those unfair practices. Phil

To: Eric Yang who wrote (11754)	4/18/1998 12:04:00 AM
From: Sam Scrutchins	Read Replies (2) \| Respond to of 213176

Don't mean to be a eager beaver but I took a look at the numbers for Q3. The consensus estimate for Q3 is currently at $0.24. I haven't done a detailed analysis yet but using some rough estimate it looks like Apple should be able to more than double that this quarter. Eric, You want to be an eager beaver? Go for it. I'm sure most of us wanted you to publish your new numbers Thursday morning. Just a couple of words of caution for Q3. I would imagine that Apple will be selling a greater percentage of computers to education institutions and students going to college this summer. I'm not sure how that will play out, but I imagine that many sales in Q2 were of the upgrade variety to patrons who were willing to pay top dollar for the G3. This may be less of a factor in Q3, so margins may not be as significant as they were in Q2. In this respect, please quantitfy how much each percentage change in margins will affect the bottom line. I was never able to get your spreadsheet to work in the Wintel environment, so I need to know this from you. Also, and as pointed out by at least one analyst, much of Apple's profit was attributed to tax loss carryforwards. It is not clear to me why Apple had to make any provisions for income taxes in Q2 given its large losses last year, but apparently they did. At some point, these carryforwards will go away, but I do not know exactly when that will happen. I suppose it is possible that it could affect Q3. Please respond on how significant you think these factors will be. Sam