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Technology Stocks : American Power Conversion

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To: Stephen Tomasetti who wrote (2335)4/11/2000 4:34:00 PM
From: The Ox  Read Replies (1) of 2574
 
The way I see it, APCC is trading at fair value, more or less. The 3 year EPS growth rate has been about 30% and when extrapolating this year's earnings and applying a 30PE I get a $41 stock price. If APCC can repeat last year's performance and show growth greater than 35%, then we should see a $50+ stock by year's end. Repeating last year's 38% EPS growth and putting a 38 PE on the stock would justify a $55 price. I think it's too early to make the call for such lofty expectations.

At $37/share, I think the stock is about 10% under valued. A decent entry point for those wanting to dip their toe in the water. I agree with the previous poster who thought that $35/share was a nice place to buy in.

Just my opinion,
Michael
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