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Wall Street Investment Manager Calls Apple's Stock "A Much Better Play" Than Dell

Wall Street Investment Manager Calls Apple's Stock "A Much Better Play" Than Dell

by , 4:30 PM EST, February 7th, 2001

Charles Lemonides, Chief Investment Officer with M&R Capital Management, is bullish on Apple. During an appearance on CNBC last night, Mr. Lemonides called Apple "a much better play" than Dell in response to a question from a CNBC viewer. Mr. Lemonides cited Apple's management which he said was "at least as good" as Dell's as one of the reasons he favored the company's stock. Dell is considered to have some of the best management in the computer industry.

Apple's strong cash position was also cited. Mr. Lemonides said that Apple currently had some US$15 per share in hard assets, including the US$4 billion in cash on hand. This means that if the company was shut down in order to sell it's physical properties, the sale would result in some US$15 per share to the shareholders. Apple's stock has been trading in the low US$20 range for the past 10 days. Mr. Lemonides didn't mention that the company's intellectual property portfolio is potentially worth many billions more. Apple holds thousands of patents in various technologies.

Lastly, Mr. Lemonides pointed out that Apple's P/E ratio was "dirt cheap," which he contrasted against Dell's. He characterized Dell's P/E ratio as "fair, at best." Mr. Lemonides's portfolio that he manages for M&R Capital Management includes a stake a position in Apple.

Apple's stock traded lower today as Wall Street reacted negatively to Cisco's earnings report fro yesterday. AAPL closed at 20 3/4, off by 3/8 (-1.78%).

We will be covering Apple's stock action in today's Apple Stock Watch. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report. You can also check out our Apple Financial Boards, a new moderated forum for Apple Investors and people who are interested in Apple's financial dealings.

The Mac Observer Spin:

It is somewhat unusual to have investment managers actually point out the things that Mr. Lemonides pointed out. He seemed quite excited about Apple, and that too is uncommon from Wall Street types. His brief comments offered a ringing endorsement for investing in Apple.

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