Apple’s new TV device looks promising

Article Excerpt

APPLE INC. $93 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 861.9 million; Market cap: $80.2 billion; WSSF Rating: Extra risk) has started shipping its new “Apple TV” set-top device, about a month behind its original schedule. This product uses wireless technology to transfer movies and other videos from a computer to a regular TV set. By making it easier to watch these shows on a TV instead of a computer screen, Apple hopes to spur more downloads from its iTunes web site. This product has the potential to dominate this niche, much in the same way the iPod captured the bulk of the music player market. But at 30 times earnings, Apple is vulnerable to a big setback if earnings fail to meet expectations. The SEC is still investigating the company’s stock option practices, which adds to its risk. Apple is a hold. hold…