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Technology Stocks : APACHE Medical Systems, Inc.

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To: Scott Armstrong who wrote (6)11/19/1996 12:43:00 PM
From: Ron Kory   of 26
 
Scott: It is a sad day when we talk about a stock outperforming
as it goes from 15 to 6 3/4.

As I said before, when tax-loss selling dries up this group should
have a nice bounce. Some stocks have not reported any bad news but
have been pummeled because of guilt by association. I have gone
through a bunch of analyst reports and PHSS, ESIX, and ACCS all look
interesting. They all do different things than your company so you
may not be interested in them but none of these companies have had
any bad news, all are greatly reduced in price (PHSS has "out-
performed"in the same manner as your company), and according to
various analysts (for what that is worth) have tremendous prospects.

ESIX and PHSS sell at about half their projected growth rates. ACCS
used to sell at a premium to their growth rate but since it has come
down to 34 from 65 it is now trading at a slight discount to its
growth rate.

The bottom line: are all of these earning blowups company specific
or are these blowups indicating something more serious within the
industry. My guess is the former.

What do you do for Apache?
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