MSN MoneyCentral Stock Research Wizard

Many thanks to my daughter Dana for providing the following summary of the types of information to be found on the MSN MoneyCentral Stock Research Wizard about Apple Computer, as of February 9, 2008.

This summary is provided "for academic informational and illustrative purposes only" and should NOT be used under any circumstances for making actual investment decisions. Please use the free MSN MoneyCentral Stock Research Wizard yourself when making actual investment decisions.

This information is provided only to illustrate the types of information to be found on the MSN MoneyCentral Stock Research Wizard, and any actual information contained in this report may be inaccurate, incomplete and/or may have changed significantly since it was prepared.

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Apple Computer, stock symbol: AAPL

5 key research questions:

Apple Fundamentals

Apple Inc. designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals, and networking solutions under such well known brand names as Mac, iPod and iPhone. The company is experiencing a resurgence under Founder Steve Jobs, after having slipped in recent years. The main company strength is high quality product design in both hardware and software, and the company is even clawing back market share in personal computer operating systems, after having been almost shut out of this market by the popular Microsoft Windows operating system.

Company sales of $26.5 billion are a bit under the industry average, but of course, this is a comparison with Microsoft, which skews the average significantly. However, one year income of $4.07 billion is actually a bit better than the industry average, which is a good sign. One year income and sales growth are both ahead of the industry average, indicating increasing success in competition with Microsoft. One year net profit margin of 15.4% is significantly ahead of its 5 year average profit margin, and the industry average, indicating a strengthening position. The company is operating with no debt.

Apple Stock Price History

Apple stock price change for both the past 3 and 6 months has been negative (-30.9% and -4.1% respectively), although the 12 month stock price change is positive (+40.7%). In each case, these averages compare favorably with industry averages, which are slightly worse. The stock is currently trading (as of the time of this writing) at $122.50 per share. The first resistance level on the upside, in comparison with the 200 day moving average stock price, is $146.61, and the second resistance level, in comparison with the 50 day moving average, is $170.75. On the down side, the support level for Apple stock is $83.00, which is the 52 week stock low.

Apple Stock Price Target

Based upon Apple’s current price/earnings multiple of 26.6, and the average earnings per share, as estimated by 21 professional analysts that follow this stock, Apple’s current fair valuation using the current Price Earning Ratio multiple, ranges from $132.48 to $152.90, with an Average Estimated Price of $140.76 in 2008. Next year’s valuation, using the same methodology, results in a fair valuation from $164.22 to $187.96, with an Average Estimated Price of $175.54 in 2009. Apple’s alternate target price, based upon industry multiples, results in a projected valuation of $140.76 in 2008, and $175.54 in 2009.

Apple Stock Price Catalysts

Representative recent catalysts for changing Apple stock price valuations include:

News – “Apple Ready to Shine Again 2/8/2008, from TheStreet.com

SEC Filings – Apple Quarterly Financials, the 10-Q Report, filed on 1/31/2008

Insider Purchases and Sales – A company director, Millard S. Dexter, sold 20,000 shares on 11/29/07

Advisor FYI Alerts (like changes in analyst projections or changes in the financial condition of the company) – Representative recent samples include:

· Price/Volume alerts - 01/23/08 AAPL opened significantly up

· Analyst alerts - 01/31/08 Current quarter earnings estimate increased.

· Financial alerts - 10/23/07 AAPL's profit margin up again

· News alerts - 02/06/08 AAPL appears to be bouncing off a 52-week low

StockScouter Rating - StockScouter rates U.S. stocks traded publicly for at least six months on a scale from 10 to 1, with 10 being best. Apple is currently rated “10”.

Apple Stock Comparison

Compared to Microsoft, Apple stacks up quite well. Categories in which Microsoft beats Apple include: Total Sales, Total Income, lower Price/Earnings Ratio, Net Profit Margin, Company 3 Month Price Performance, Industry 3 and 6 Month Price Performance, and 3 Month Relative Strength.

Categories in which Apple out performs Microsoft include: Share Price Percent Gain for this and next fiscal years, Sales Growth, Income Growth, 6 and 12 Month Price Change, Industry 12 Month Price Performance, and 6 and 12 Month Relative Strength.

In conclusion, the MSN MoneyCentral Stock Research Wizard provides an excellent and interesting method for quickly and easily summarizing and evaluating publicly traded securities.