I thought the Conference was positive. Read this.
4/26/97
APC stock takes a hit in trading
Journal-Bulletin Staff Report
Stock in the volatile American Power Conversion Corp. of West
Kingston lost more than 12.7 percent of its market value yesterday, the first full day of trading after the company said it expects lower growth in revenues and higher costs.
American Power's common stock fell $2.375 a share, closing at
$16.25 in Nasdaq trading.
More than 7 million shares changed hands, nearly four times
Thursday's volume. As a result, American Power was the sixth most
actively traded issue on the Nasdaq National Market, based on share
volume.
After the markets had closed on Thursday, American Power reported
a 37.88 percent jump in net profit on a 21.44 percent increase in net
sales for the three months ended March 30.
At the same time, however, the company forecast that its growth in
revenues would slow, while its level of expenses would rise.
When formal trading opened yesterday morning, Wall Street reacted to
the news by driving down the company's stock price sharply.
In the first half-hour alone, the stock price tumbled from about $19 to just above $15.50. And at a few points later in the trading day, the stock price dipped below the $15.50 level. (Its low for the session was $15.375.)
By day's end, however, the stock had recovered a bit and seemed to
find some support.
American Power makes devices that protect computers from power
surges or failures. Investors have become accustomed to annualized
revenue growth of 25 percent, a money manager told Bloomberg
Business News.
But on Thursday, the company said its revenue will increase 20 percent to 25 percent this year. American Power also said its costs could increase by as much as 5 percentage points more than sales.
An Advest Inc. securities analyst yesterday said he wasn't concerned
about the company's prospects, calling the stock "ridiculously
undervalued."
American Power stock opened the year well above $25 a share, and
reached as high as $31.375 on Jan. 10, according to daily closing
prices provided by Bloomberg.
Despite recent pressure, however, the stock still trades well above
levels last October, when it closed as low as $14.625 on Oct. 9,
according to Bloomberg figures.
Bet you all feel like Suckers now. |
