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Technology Stocks : American Power Conversion

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To: Joseph Francis Torti who wrote (1578)7/10/1997 10:59:00 AM
From: Stephen Tomasetti   of 2574
 
With regards to the Exide products, although they do make (or OEM) small units that compete directly with the APC product line, their main product set has always been the larger series of KVA units. If I recall their catalog had units going as high as 300KVA, portable trailer type units or customer built series of products. So if the two were to merge then APC would gain market share in the large power business, above 20KVA.

IMHO I doubt the two would ever merge, APC's biggest problem is going to be diversifing into other markets with new and different products. This company will never make it to 2billion a year in sales on simply selling UPS products.

Once again IMHO this is the reason why APC hasn't been purchased by any large companies, heck why didn't HP buy them rather than folding their product set. Because they didn't see enough revenue long term to even bother being in this industry.

Just my 2cents worth.

-Steve-
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