Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Friday, October 5, 2007

Lets talk about apple

Hypotheticly, if apple did the unbeliebable took over 100 billion in pc market share... assuming the profit margin in pc's was the same as mac....

they pick up 2 dollars per share in earnings...

$6 per share. that is still a p/e of 32 which is still 12 more P/E than HPQ which trades at 20.

That is called overvaluation. when even if the best thing in the world happened, the P/E of apple is still over valued.

at apples current valuation, they need have a P/C in every home, everyone needs to have a iphone, and an Ipod.

that is it's current value.

maybe I'll give this to herb greenburg.

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