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Technology Stocks : American Power Conversion

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To: Mad Bulgarian who wrote (1324)	4/30/1997 7:13:00 PM
From: Bob G	of 2574

Briefing.com reported today..... 13:00 ET ****** AMERICAN POWER CONVERSION CORP. (APCC) 18 3/4 +2 1/8. Just like a one-hit wonder in the music industry, this stock shot-up the charts in late 1996, only to see its appeal quickly fizzle out. This morning the developer of surge protection equipment is getting another chance at the microphone as a result of a PaineWebber upgrade to "buy" from "attractive." According to the firm, APCC's multiple of only 14 times its 1997 estimate of $1.20 a share is simply too cheap, given the stock's historical average P/E of 22 to 23 times earnings. And given the company's strong product line and its increasing dominance in the 0-5KVA market, PaineWebber believes the stock is simply to sexy to overlook. The firm's bullish comments come on the heels of APCC's 1st qtr earnings report. For the period sales rose 21.5% to $172 million, accompanied by a 38% increase in net income and earnings per share. While the company has already revised its revenue growth expectations lower, PaineWebber continues to believe that rosy bottom-line prospects remain intact. In fact the firm raised its fiscal 1998 earnings estimate by 10 cents to $1.55 a share, indicating an annual growth rate of 29%. However, one must take into account that PaineWebber is one of the few real bulls on this stock and has consistently come to the rescue of the shares. Additionally, the firm's forecast growth rate is a full 11 percentage points above the rate indicated by current First Call estimates of $1.23 and $1.45 for 1997 and 1998. But given the stock's current discount to its growth rate and the strong possibility of more upward revisions to earnings, these shares certainly offer investors the opportunity for low-double digit growth over the next 12 months.

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