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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?


To: xiangheng xu who wrote (10778)12/8/1997 1:59:00 PM
From: Rational  Read Replies (1) | Respond to of 12298
 
This does not necessarily mean that the company will ever use it. The company has a purpose. Whatever it is, issuing new equity capital means the company needs more money and it will dilute APM's EPS. SUNW's case is very different because they have huge order backlogs and the potential return on new equity capital is high. We have been debating here about APM's orders being cancelled and so I do not think APM is comparable with SUNW.

Sankar