iPad should expand Apple’s profit

Article Excerpt

APPLE INC. $201 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 906.8 million; Market cap: $182.3 billion; Price-to-sales ratio: 3.8; No dividends paid; WSSF Rating: Average) will start selling its new iPad tablet computer in late March in the U.S. Apple could sell 6 million iPads in the first year. When you account for the cost of chips and other parts, that would generate roughly $2.6 billion in gross profits. To put this figure in context, Apple earned $3.4 billion, or $3.67 a share, in its first quarter, which ended December 26, 2009. The iPad will also spur demand for movies, music and books at Apple’s iTunes web store. Apple is a buy. buy…