F orbes has named Appleis stock the Stock of the Month for December. The last time Apple was named as the magazineis stock of the month was 5 years ago, in 1997. The magazine had favorable comments about Appleis cash on hand, the success of the retail stores, as well as Jaguar. From the article:
Obviously, we do not expect a return to the glory days of the late 1990s, but Appleis financial condition looks remarkably similar today as it did back in 1997 when it made its initial appearance as stock of the month. That first recommendation resulted in a 500%+ average price appreciation when the last of our shares were sold in late 1999. Today, the balance sheet is pristine, with over $4 billion in cash and short-term investments, equivalent to more than $12 per share. In 1997, Apple had $11 per share in cash on a virtually debt-free balance sheet.
Recent results have been disappointing, as they have been for most tech companies, with Apple posting a fiscal fourth quarter (ended 9/02) loss of $0.13 per share. Still, we think its future is bright. Its lineup of products, including Mac OS X v10.2 Jaguar, is very exciting and the companyis recently opened retail stores sold over $100 million of merchandise and had 2.25 million visitors last quarter.
The magazine also gave a target price:
Because we view it as an inexpensively priced (95% of sales) growth stock, we would buy Apple up to $16.33.
There are additional comments on Apple, and the companyis stock, at Forbesi Web site. Appleis stock last traded at 14.85, down 0.34 (-2.24).
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