APCO Automobile Protection Company Message Board

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Non-Tech : APCO Automobile Protection Company

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To: TheInvestor who wrote (1460)	3/7/1998 1:27:00 PM
From: Sergio H	Read Replies (1) of 3351

APCO is a small cap stock. The stocks that you are comparing APCO to are large caps. CSCO, MSFT and DELL were once small caps. Now they are large caps. This means that their business has grown. APCO's business is also growing. Right now they have less than 2% market share. This means that if they are able to obtain another 1% market share, their business will have grown by 50%. I am not sure that APCO will achieve that in the next 12 months. I am satisfied with their current growth rate, but this example illustrates the huge potential that APCO has. CSCO, MSFT and DELL high techs. APCO is in the automobile waranty business. You believe that CSCO, MSFT and DELL are in "a hot industry group" while APCO is not. The cost of an automobile today makes APCO's industry very "hot." Nothing high tech about it, but still very hot. Some people believe that the high techs may not be too hot right now, but that is another story. However, if this is true, the automobile warranty business may be a hotter sector than the high tech sector. Your conclusion that APCO is trading at around $10 because people believe it to be worth this price can't possibly be wrong. This is a good point that you are making. Sergio

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