Applied Magnetics Corp Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Applied Magnetics Corp

APM 1.300

-2.3%

Dec 12 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: T Bowl who wrote (10697)	12/6/1997 7:15:00 PM
From: Think4Yourself	Read Replies (3) of 12298

OK Todd and Jon, you got me to reanalyze RDRT and APM... I came across something interesting and perhaps Yahoo is wrong. on Friday RDRT closed at 18 1/2 and APM closed at 14 15/16. Yahooo claims that in the last 12 months RDRT had NET income of 2.93 Million on sales of 1.16 Billion (EPS = 1.86) while APM made 96.1 Million on sales of 494.8 Million (EPS = 4.05). This despite the fact that APM has a .51 debt to equity ratio while RDRT's ratio is only .31 Lets take away 10 Million for the Micropolis charge in case it is not already included in APM's numbers. Since Micropolis was expected to account for less than 2% of APM's sales for 1998 I would argue it will have a negligible impact on 98 earnings. Am I missing something here? while true that RDRT will most likely sell more units than APM next year (they certainly appear to have done so this year), my understanding from these numbers is that APM is a much more efficient operation, or at least has been in the last twelve months. They made over 29 times more profit on less than half as much sales. So if you believe APM is overpriced, are you also shorting RDRT which is more expensive and less efficient? If not, can I sincerely ask why? Or is there something wrong with Yahoo's numbers and/or my simple analysis? Serious question, not a cheap shot. Ken

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next