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: Alomex who wrote (22483)	1/14/1999 2:44:00 PM
From: MeDroogies	Respond to of 213173

Ummm... all evidence indicates that they have grown their market share pretty nicely. The concept that this was an upgrade option is nuts... Virtually EVERY article in the last quarter heralded the return of Apple based on the iMac and the fact that they have regained market share.

To: Alomex who wrote (22483)	1/15/1999 12:35:00 PM
From: 16bit	Read Replies (4) \| Respond to of 213173

I found the Fool article to be very interesting. It got me to thinking. Maybe, AAPL's earnings should be evaluated based on a higher tax rate. Isn't AAPL's low tax rate similar to a one-time gain? I believe the assumption is that you can not evaluate Apples future based on a 10% tax rate. As they wipe out losses from previous years the rate will go up. It has already gone up from 7% for the 4th quarter 98 to 10% for the 1st quarter 99. When I decided to look at EPS based on 30% tax rate I found what seems to be a discrepancy in the reported fully diluted EPS before one time gain. According to the news release at apple.com their earnings without the one time charge is $123 million and the number of diluted shares is 172,062 thousand. Well, my little HP12C says that 123 million divided by 172 million is .715 or 71.5 cents EPS. How did Apple come up with 78 cents? 10% 30% 169 169 Earnings before taxes 017 051 Taxes 152 118 Net Income 029 022 Gain from Sale 123 096 Income before gain 172 172 Diluted shares .715 .558 EPS The actual gain on sale was 32 million. Apple reduced earnings by 29 million to account for the 10% tax rate, so I reduced earnings by 22 million to account for a 30% tax rate. Using 55.8, you get $2.23 EPS (4 x .558) giving a PE of 18.37 at $41 Using 71.5, you get $2.86 EPS (4 x .715) giving a PE of 14.34 at $41 Using 78.0, you get $3.12 EPS (4 x .780) giving a PE of 13.14 at $41 So, which one do you use? Does any of this make since or am I off in left field with the daisies? Byron