American Power Conversion Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : American Power Conversion

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Gottfried who wrote (1326)	4/30/1997 9:09:00 PM
From: w0z	of 2574

Gottfried, your comments remind me of a Barron's interview with Bill Fleckenstien a few years ago (a well-known short seller). He said that APCC had no competitive advantage and that anyone could quash them in an instant. At the time I was working for a competitor of APCC's, and thought to myself "He's lucky he doesn't have to compete with them!" He completely missed the major advantages APCC has such as brand preference (built up over many years of massive advertising and promotion), channel presence (there's not much room on distributors' shelves for another UPS company) and manufacturing costs (driven in part by learning curve advantages from huge volumes and also droven by some very good design for manufacturability). I also worked for HWP for 27 years but it does not surprise me that they dropped this business after a few years of trying to establish a position. The barriers to entry to displace APCC are formidable...even for a company like HWP! They are not unlike the position Coke has in terms of brand preference and distribution...now if the market would just match KO's PE of 40, we would all be very happy!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next