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

To: David Semoreson who wrote (23817)	4/6/1999 5:40:00 PM
From: soup	Respond to of 213176

Earnings-Estimate Revisions Put an End to the Rating Game. via street.com >Now analysts are adding estimate revisions to their repertoire, as if "they were trying to maneuver the stocks up and down," says Craig Johnson, principal of consulting firm Pita Group and a close follower of analyst activity. "If you based your investing decisions on just what these analysts are saying, you would be out of business in a month," says an institutional money manager who requested anonymity. "If you knew how to make money, you wouldn't be on the sell side."< fnews.yahoo.com

To: David Semoreson who wrote (23817)	4/7/1999 12:18:00 PM
From: Eric Yang	Respond to of 213176

"Eric, do you know what the ARMHY investment is on Apple's books for?" As I understand it David, since Oct 17, 1998, the market value of Apple's investment in ARM is fully reflected in the shareholders' equity. In other words, if the value of that investment goes up by say $100 million at the time a quarter ends then the shareholders' equity in the quarterly report will increase by $100 million. However, the appreciation in value of the ARM investment isn't recorded as income until the shares are sold. Thus each time Apple sells some shares in ARM (as it did in Jan, 1999) it will record a "one-time" gain in addition to regular earnings. The carrying value of Apple's remaining shares in ARM is around $13.3 million (my estimate... so it could be a bit off). Thus hypotheticall yif Apple were to sell all of its remaining shares for the market value of $375 million then the net income would be $375 million minus the $13.3 million cost minus any tax liabilities. Eric