Apple Computer Inc. is becoming more attractive to investors because of its valuation, earnings growth potential and cash reserves, the Wall Street Journal (WSJ) said in its “Heard on the Street” column.
reported by Bloomberg.com, the company’s shares remain less expensive than those of Compaq and Dell, and trade at 18 times earnings of $1.22 a share expected by analysts for 2001.
Apple’s customer base of about 24 million will continue to be loyal if the company keeps making new products, according to the WSJ, which cited Cumberland Associates LLC analyst Dipak Patel. Apple’s revenue is expected to increase 10 percent to 15 percent a year over the long term, slightly more than competitors, the paper said, citing securities firm Gerard Klauer Mattison & Co.
However, Apple may face problems since it relies heavily on schools, publishers and graphics professionals as customers, the paper said. Its share of the PC market has been about 3 percent for the past few years, the WSJ concluded, citing the Gartner/Dataquest research firm.