From: an780@cleveland.Freenet.Edu (Travis Grundke)
Newsgroups: comp.sys.mac.advocacy
Subject: Re: Apple stock
Date: 24 Jan 1993 18:11:30 GMT
Organization: Case Western Reserve University, Cleveland, OH (USA)
Reply-To: an780@cleveland.Freenet.Edu (Travis Grundke)
NNTP-Posting-Host: thor.ins.cwru.edu


In a previous article, hopeman@seas.smu.edu (Jennifer Hopeman) says:

>Apple's stock recently fell from 65 to below 60 after the earnings
>report was released.  What do you all think are the prospects for Apple?
>Do you think the company can improve on it's earnings?  Do you think
>the stock will rise or fall this year?  I'm asking this because I'm
>considering whether or not I should sell the shares that I own.  I
>assume that Apple's future success depends on how well they can compete
>with clones.  Thanks for any info.
>
>Bill
>
 First of all, Wall Street has a tendency to jump and scream at the
slightest event. If there is a minor earthquake in California, Apple's
stock falls as analysts worry a major quake could destroy Apple (which is
one of Apple's "Events which can change profitability") <see their 1992
report>. Secondly, I recommend you get a copy of the 1992 annual report by
calling and requesting it- its free. (408) 996-1010)
 Apple's future does not entirely depend on competition with clones- Apple
is slowly but surely branching out into other areas via their Personal
Interactive Electronics division, and other new divisions in Apple. By
spening $602 million in R&D last year, Apple has proven its procurring its
future. Don't look short term, look at what Apple has for the long run.
Short term wise, Apple is very strong- volitile, but very strong. Long term
APple is even stronger and has proven itself to be a leader in the industry
once again. They have very powerful management, a very strong cash flow,
and the largest reserve cash flow in the nation: $2 billion in surplus
(what are they saving that for- college? (as John Dvorak says) ). 
The earnings report, if you saw it (and being a shareholder you should
have, as well as have received the annaul report) stated that Apple broke
the magical $2 billion mark for 1Q 1993, yet profits dripped 3% due to
lowered profit margins and the cost of introducing new products. This is by
no means a reason to jump ship at all. There is no way to tell if Apple
will rise nor drop this year based on current events. When we'll feel
something occur is around December or January of 1994 when the results of
Newton and Apple's new products will be felt, and by then we'll know if
PowerPC is on target or behind. These will make a difference. Based on past
exprience, you're going to find the stock fall during March-September (a
typical slowdown of computer sales) and pickup in October-December.
HOWEVER, this year Apple is releasing new products all throught the year,
not at just one or two times a year- so a difference may result.
-- 
Travis Grundke		   |If you would like to receive a FREE Trial issue
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Newsgroups: comp.sys.mac.advocacy