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

To: J R KARY who wrote (15576)	7/15/1998 6:37:00 PM
From: Eric Yang	Read Replies (1) \| Respond to of 213177

The 171 million doesn't really dilute our EPS. Since when you add the extra 24.6 million shares you also add $10.7 million interest back to the earnings and that is anti-dilutive. The net effect is anti-dilutive (no dilution) up to the point when Apple earns about 77 million. After that it is slightly dilutive but nothing close to the normal dilution if you were to just add 22.4 million to the total shares. You see, the 10.7 million interest is allowing the 22.6 milllion shares to carry it's own weigh. I'll explain this a bit more in an article. This should have been written 2 months ago. It's been sitting on the future feature list on AAPL investors for months Another hidden gem from the conference call was the shares Apple still owns in ARM. As mentioned in that article a few weeks ago currently those shares are worth 210+ million. Instead of adding the whole thing into Apple's equity, Apple is going to add a little at a time. I think they added something like 16 million to the profit this quarter....that was on top of ARM IPO and operational income. At this rate Apple will be able to continue to do this for 2-3 years even if ARMHY share price stays where it is. So many hidden treasures in the report. By the way inventory is down again by a huge margin! Margin increased to 25.7%. I think people thought I was crazy with that 26% estimate. Got lucky there. Eric