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

To: Andrew Danielson who wrote (24143)	4/19/1999 1:31:00 PM
From: HerbVic	Read Replies (2) \| Respond to of 213177

Well it gets even better. AAPL now at 34 1/16. HerbVic

To: Andrew Danielson who wrote (24143)	4/19/1999 2:25:00 PM
From: Adam Nash	Read Replies (1) \| Respond to of 213177

The problem with your analysis of Apple's PEG ratio is that you are not taking into account Apple's extremely high cash-per-share. After calling the convertible debt, I saw one post that estimated cash per share at over $15. That means that you are paying less than $20 for the $2.10 Real-Tax-Rate earnings. That is less than a P/E of 10, and a PEG of about 0.6 I believe you are right, Apple should be trading at a PEG of 1.0 on their earnings + cash on hand. That means about $35 + $15 = $50. - Adam