“These so-called off-balance sheet expenditures, Daryanani notes, have a high correlation to Apple’s future revenues. Basically, they are a signal that the company is ramping up something big,” P.E.D. reports. “He takes last quarter unusually large prepayments as evidence that Apple will beat the Street’s expectations by about 10% over the next couple of quarters.”
P.E.D. reports, “He highlights three relatively unknown U.S. companies whose growth seems to be particularly well correlated with Apple’s: Jabil… Amphenol… [and] Molex.”
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