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

To: Phillip C. Lee who wrote (18378)	9/23/1998 10:10:00 AM
From: Andrew Danielson	Respond to of 213177

PE update: GTW breaks out Well, the latest update on forward-looking PE's doesn't look very good for AAPL: AAPL: 17.56 CPQ: 18.04 GTW: 19.69 GTW started breaking from the pack more than a week ago and has yet to give any substantial ground back. This is on no news I know of. In fact, I've read from more than one source (thestreet.com included) that GTW's huge write-off of inventory from a year ago may have been padding their results for the last few quarters. This kind of news/commentary should if anything depress the stock a bit. . . Meanwhile, AAPL, as we all know, has been lagging--even behind CPQ. CPQ's PE would put AAPL at nearly 38. GTW's PE puts AAPL at more than 41. And remember, these PE's are based on analysts estimates of earnings for next year ($2.10). If it was widely believed that AAPL would blow away earnings estimates (both this quarter and following quarters), then this would show up as a discounting of that information by means of a higher PE. This is not happening. Therefore, expect major surges upward should AAPL come in with the kind of earnings many of us are suggesting. (Note that the last time I looked, the highest analyst estimate for Q4 was .60!) Andrew