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Technology Stocks : APAC Teleservices

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To: investz who wrote (205)6/18/1998 7:43:00 AM
From: Elsewhere   of 231
 
>Anyone ALIVE in this news group?

Of course. APAC at its current level looks very attractive based on its fundamental valuation. A YPEG calculation:
- Current quote $8
- '99 consensus EPS estimate $0.67
- '99 PE 12
- Estimated five-year EPS growth 25%
- PEG (PE divided by growth) '99 -> 0.48
(generally it's difficult to find candidates below 1)
- YPEG price target $16.75

In my view the continued slide is induced "technically". Just as many other stocks are currently in a positive feedback loop APAC is in a negative one. It's easy to imagine the frustration of people buying beyond $40. In my view it will take years to get rid of the stock oversupply by disappointed longs but eventually an APAC position established now should be very rewarding. If the projected 5-year growth materializes APAC EPS will be $2 by 2004, so we have a PE 2004e 4 stock. If APAC returns to a market valuation this could mean a quintupling until then.

Jochen

References:
YPEG: fool.com
EPS, growth estimates: biz.yahoo.com
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