read <br><br><br>

Cool, more good news from Forbes.com:<br><br>Market Scan <br>Apple Likely To Outperform Competition For Years <br>Maya Roney, 01.13.06, 10:57 AM ET <br>Piper Jaffray research analyst Gene Munster maintained an "outperform" rating on Apple Computer (nasdaq: AAPL - news - people ) and raised his price target and earnings estimates for the company based on this week's announcements at MacWorld and expectations for market share gains for both Mac and iPod through continued product innovation. <br>"We believe 2006 is poised to be the year of both iPod growth and, more importantly, Mac market share gains," wrote the analyst in a research note Friday. <br>"While seemingly aggressive, we expect Apple can outperform the competition for multiple years, assuming the current pace of innovation continues." <br>There has been growing chatter that Apple is becoming a new representation of an "Internet bubble stock," Munster noted. He believes this label is "unfair" and expects earnings to grow more than 35% in 2006. <br>The research analyst said Apple would look to new categories in addition to iPods and Macs in 2006, including mobile phones and other consumer electronics entertainment devices. <br>In addition, a two-for-one stock split is likely to be announced soon, said Munster. "While not necessarily a catalyst for Apple's business, we do believe another stock split will be a mild positive for Apple shares." The stock last split in the $80 range, in February 2005. <br>Munster raised fiscal 2006 estimates for Apple to earnings of $2.17 per share on revenue of $20.22 billion from earnings of $1.74 per share on revenue of $17.58 billion. He raised fiscal 2007 estimates to earnings of $2.41 per share on revenue of $22.68 billion from earnings of $2.12 per share on revenue of $20.5 billion. <br>He increased the price target to $103 from $80. <br><br>oh yeah, that's going in the blog

Also from Forbes:<br><br>"This Apple Is Too Shiny"<br><br>"The fashionable iPod has made Apple Computer beloved on Wall Street. But its success masks an erosion in the company's profitability."<br><br>Old farts, the hidden caulk of civilization. Jim Atkinson

That's some interesting and honest writing. Thanks for the link!<br><br>- alec

Stocks with a P/E around 55 remind me of the 90's bubble. I'd like Apple to do well but...<br><br>Old farts, the hidden caulk of civilization. Jim Atkinson

At this point, you'd have to be nuts to put money into Apple. The simple strategy: buy low, sell high.<br><br>. . . . . Here's lookin' at [color:red]you</font color=red> kid.

Had I put the money I spent on my beige G3 plus accessories into Apple stock that's exactly what I'd be doing now, sans a lot of the frustration. <br><br>Of course, had that been the case, I wouldn't have met all you nice folks.<br><br>Old farts, the hidden caulk of civilization. Jim Atkinson

I tend to agree, Yoyo. But this is the thing: I was saying that last year when Apple was around 80--- and then it split. Well, look what it has done since! Poised on the verge of another split, we are all speculating: Can the party finally be over? Is it over? <br><br>I think you might be underestimating the switch to Intel and what it means as a marketing tool. Even though things really haven't changed that much (you still can't launch windows apps from a Mac), there will now be a perception that Macs are a more viable alternative to Dell et al because they use the "same" processors; processors that must be good if so many years of intel marketing are any proper indication.<br><br>I'm not saying that the Mac will be the next iPod--- it's too expensive. But we will see a virtually unprecedented rate of increase in marketshare due to this move. <br><br>Exciting stuff.<br><br>

Interesting reading. I don't doubt the margins are smaller on the iPods and Steve said from the beginning there was little money to be made on iTMS.<br><br>BUT... halo effect. It's real. It's happening. More iPod sales are translating into more Mac sales where margins are higher. The switch has been slow to happen but finally it's becoming apparent. Just ask anyone such as Lori who is involved with switcher problems in Apple Discussions. The iPod has merely been the bait to reel them in.<br><br>

I bought AAPL the first week in January for $72.51. Look where they are now. <br><br>Even the most conservative are predicting $100 + and no doubt there will be a stock split shortly, doubling my share holdings.<br><br>