You are right. QNTM, WDC and SEG not very bloody, yet.
How about APM?
Its current price is ~ $22 to $23. Its 1997's estimated EPS is $4.49.
It is a $545 million market cap company, trades at a 64% discount
PE multiple of 5.1 X, vs. the 14.3 X average multiple at
which the computer peripherals industry is priced.
Briefing.com also recommended this stock:
"In our Brief a few weeks ago we noted that bearish momentum
could carry APM lower over the near-term, especially on a break
of key support at 30. Meanwhile, we liked the stock's long-term
potential for significant capital appreciation based on deeply
discounted valuations and strong growth prospects over the next
few years. Since our report, the stock as well asthe group has
come under heavy selling on investor fears of growing pricing
pressures. However, in our conversation with the company's CEO
we came away convinced that the market's fears are exaggerated.
While the supply shortages which kept prices abnormally stable
over the past couple of quarters have given way to a leveling
off between supply and demand, neither APM nor the industry is
experiencing excess supply. To the contrary, strong growth in
the PC market should continue to drive impressive revenue and
earnings growth. Briefing remains optimistic over Applied
Magnetic's long-term prospects. Given the stock's better than
market growth projections and its relative p/e of 0.32, we
expect APM to stage a complete recovery over the next 9- to
12-months. (Rev: 06/03)" |
