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Strategies & Market Trends : Undervalued Stocks = Low P/E to Growth Ratios

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To: Mitch Vine who wrote (285)11/17/1997 5:56:00 PM
From: Robert T. Quasius   of 297
 
I disagree with your assesment of APM. APM has been shipping production volumes of MR heads for some time how, while milking TFI heads for another 2-3 quarters. TFI heads are more economical for smaller drives.

APM is ramping up with MR, and based upon the strength of present management in growing APM from a nearly bankrupt concern a few years ago, I am confident that APM will successfully transition to full MR production as TFI heads fade into the background. Earnings were off last quarter because yields tend to be lower when transitioning to newer technology. Ditto for another quarter or two, but after that watch out! APM has demonstrated considerably higher margins than their main nemisis, RDRT.

APM is a good stock to hold if you just have a little patience. The P/E is rediculously low right now, but the long term growth rate consensus is around 25%.
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