Dueling Fools Dueling Fools
April 01, 1998

Apple Duels Day!

Sir Isaac Newton knew this would happen all along. Apple (Nasdaq: AAPL) had become the entrepreneurial success story of choice. A pair of guys with a vision and some garage space -- a computer so revolutionary, a stock so evolutionary -- heck, it even made Forrest Gump rich.

Well, kudos to Newton, Apple fell. In this tech stock hugging market it is hard to imagine that Apple has been one of the few surviving stocks to actually lose value over the past ten years.

But with the stock having doubled in recent months, is Jobs putting the bite back into the Apple? This week we have Louis Corrigan (TMF Seymor) and David Forrest (TMF Bogey) as bull and bear -- Dueling Fools over what once was such a Foolish investment. Is Apple jacked or simply rotting away? Read on, Mac.

You Get to Vote!

After reading all of the arguments, cast your vote for the winner of the Duel. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Apple Message board to continue the duel.

[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]

The Bull...
Apple has been a stunning disappointment to investors over the last decade, with management providing literally textbook examples of how not to run a business. I'm sure David could come up with dozens of reasons to be bearish. So why am I bullish?

For starters, I'm a Mac user. Despite Apple's troubles, I'd opt for a new Mac if Apple had an offering that is even close to the PC competition when I want to upgrade again. There's a sizable contingent of Mac loyalists out there who feel the way I do, particularly in Apple's stronghold areas of publishing, graphics, and education.
Continue...

The Bear...
Being a bear on Apple is almost a cliché these days. The poor company has been slapped around by Microsoft and Intel for the past decade. Revenue in 1995 was more than $11 billion and will, at best, be around $6.5 billion this year. CEOs have come and gone at Apple and none have done much good. The one real asset the company has is its brand name. Apple is still, despite all of the horrible execution problems at the company, one of the most recognizable brand names around. But, is that enough?
Continue...

Results for last week's N2K Duel

Answer Percentage
I can't make up my mind

4%

TMF Seymor's Bull argument

20%

TMF Edible's Bear argument

69%

They were both excellent

6%

They were both lame

2%

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