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Technology Stocks : Applied Microsystems

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To: Joe Copia who wrote (61)4/24/1997 7:43:00 AM
From: Shakespeare   of 134
 
Joe,

do you have any idea what this company does? Or does your "thinking" stop at simple financial ratios? If so, then your analysis "bearly" scratches the surface.

For example, APMC represents themselves as a high-growth software company and worhty of a high P/E multiple. While they do sell software, it's usually bundled with a substantial hardware component. P/E's for hardware test&measurement companies are much lower, typically in the low teens. Their low P/E's reflect the maturity of the hardware markets they serve. By this measure, APMC's P/E is like baby bear's porridge, "Just right."
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