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Strategies & Market Trends : APMP (formerly APM) -- Ignore unavailable to you. Want to Upgrade?

To: Rudy who wrote (9052)	12/2/1997 4:50:00 PM
From: Wayners	Read Replies (1) \| Respond to of 13456

Whenever I start to feel that panicky feeling about a plummeting stock, I always go and look at three things. Book value, cash position and the company's debt position. With QNTM their book value is $8.37, cash is $4.68 of that and their debt position is a bit high at 50% of equity. I think 25% is about normal, but probably not for this sector. I'd say single is improbable, but anythings possible. To see how low it can go, give it a P/E about the same as what APM's is right now, which is about a 4. At $2.00 in TTM earnings, I come up with $8. Add in cash value (assuming their inventory and other assets end up only being worth pennies on the dollar. Say they have a whole bunch of the TFI Crappolla lying around. Nobody wants that.) Then I come up with a rock bottom number of $12.68 unless their earnings go away in the future in which case we're talking under $10.