September 13, 2004
IT Investor's Journal: Why Apple stock looks ripe for near term
Author: Melanie Hollands
I like Apple Computer, Inc. stock as an intermediate play for around three to six months. It fits the 1994 profile, although I don't think it will be that great this time around. Apple has around $12.60 per share in cash, relatively easy comps this quarter, and has been a good stock to trade around over the last few months. In May, there was a sell-side analyst comment about 193 percent growth coming up. Now, I think the growth outlook is good, but I wouldn't go that far. The company has a strong potential product cycle in the third and fourth quarters and the IPod business is smoking. However, it's not pulling through in the PC business, which in my mind is the main reason I don't see a growth rate like 193 percent.