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

To: Michael Feldstein who wrote (13285)	5/10/1998 10:35:00 AM
From: Phillip C. Lee	Read Replies (2) \| Respond to of 213182

<<Phil, I'm pretty bad at math myself. Could you please lay out for me what Apple's PE would be at a price of $69, based on your projections for their earnings estimates? I would be grateful if you would explain how you use the numbers to arrive at a PE.>> Michael, It's my pleasure to elaborate more regarding PE here. Currently, we have $0.33 and $0.38 of nets for Q1 and Q2 '98 respectively. Therefore, if we use $0.71 to compute PE in '98, the calculation is as follows: 30.4375/2x(0.71) = 21.434 provided that we have similar Q3 and Q4 to Q1 and Q2; It's standing at 21.434 PE at the current price of $30.4375. I derive $69 based on the stock price climbing ratio of the first 4+ months of '98, the actual number should be: X/30.4375 = 30.4375/13, which yields x = 71.26. You ask: what is PE value when the price reaches $69? The calculation is as follows: 69/x = 1.97 -> x = 35, based on the assumption that Q3 net is $0.58 and Q4 net is $0.68. When comparing to Dell's 67+ PE and Gateway's 73+, Compaq's expected 50+ PE, Apple's 35 PE is feasible under the current condition of gradual revenue/net improvements. Again, my derived $69 was straightly from the increasing stock price ratio of the first 4+ months, which doesn't intend to estimate the price from PE initially. Hence, whether or not $69 is too high will totally depend on Q3 and Q4's revenues/nets as well as overall tech stocks trend in the next six months. Phil

To: Michael Feldstein who wrote (13285)	5/10/1998 1:09:00 PM
From: Michael Feldstein	Read Replies (3) \| Respond to of 213182

According to Macintouch, 3Com just bought Claris Organizer: -------- 3Com has purchased Claris Organizer from Apple and will use it as the basis of a new "Palm MacPac" due by fall: "This world-class desktop PIM will support many outstanding features, including customizable views, drag-and-drop scheduling, and powerful printing options. The native Mac OS desktop PIM, combined with a new, Mac native HotSync architecture will make synchronization noticeably faster and more seamless. In addition, the extensible nature of the new HotSync Manager will allow the integration of third party conduits with the new Palm MacPac. The Palm MacPac software upgrade will be downloadable for FREE for 60 days after the new Palm MacPac is released."