Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, June 8, 2007

Article Excerpt

APPLE INC. $124.49, Nasdaq symbol AAPL, hit a new all-time high this week after it confirmed that it will start selling its new iPhone on June 29. The new device combines a mobile phone, a digital music player and a camera. At around $500, the iPhone is more expensive than competing models, but Apple’s marketing skill and reputation for ease of use generally let it charge premium prices for its products. Strong consumer interest should help Apple reach its one-year sales target of 1% of the world mobile phone market. We continue to hold a high opinion of Apple and its products. But its high price in relation to earnings (p/e of 40) and revenue (about $24 a share) limits its appeal right now. Apple is still a hold. AT&T INC. $40.26, New York symbol T, is a much safer way to profit from the iPhone. AT&T is the only wireless provider that will offer the iPhone, and buyers must sign a..