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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Patric who wrote (12939)	1/22/1999 3:00:00 AM
From: Cary C	Read Replies (3) \| Respond to of 29382

APEX CATP... It looks to me like the internets are cooling off and the tech sector is heating up. INTC CSCO DELL etc have all been strong lately. If the market continues forward I would look for the techs to lead the way. Do you know if their largest private label oem dealer is still working down inventory? It looks like they are trying to become less dependant on oem dealers which is good. I believe last year a limited few oem dealers accounted for approx. 65% of their business >>Private-label OEM product sales decreased 0.8% to $10.3 million in the third quarter of 1998 from $10.4 million a year ago. Sales to the Company's largest private-label OEM customer decreased 26.6% in the third quarter of 1998 compared to the third quarter of 1997. This decline was due in part to a change in the Company's revenue recognition policy for sales to this customer necessitated by a modification in shipment terms initiated by the customer during the quarter from "FOB Origin" to "FOB Destination" and in part to a decline in shipments to this customer during the quarter as it worked down its existing inventories of the Company's products. The decline in sales to this customer was nearly offset by a 100.2% increase in sales to the Company's other private-label OEM customers over the same periods. << >>Increased competition may affect pricing and therefore erode the Company's gross margins in the future.<< Any idea as to how much of a decrease? 51 million in cash isn't to shabby. I noticed that they have been hiring new Sales managers to help them with their rapid growth. "The company was recently ranked fourth in Business Week's listing of ''100 Hot Growth Companies'' in America." You can't help but like that. Company is projecting 26% growth for next year assuming they do 1.10 this year and 1.39 next year. That would give them a forward 12 month pe of 27 CATP looks interesting. Tons of cash, virtually little debt, growing business and reveunues. It is interesting to see that division officer William Seibel doesn't necessarily see it that way. He was selling stock in the mid 40's up to the low 50's. I see he has filed to sell an additional 100k shares starting in October but has yet to do so. Maybe he also thinks the stock price is going higher. Looks like Mr. Sims and Grendale got a pretty sweet deal also. All of them sold near the peak to. Kind of makes you think they knew they were headed down eh? Don't seen any of them buying back either. Of course one has over a million shares I guess he has enough. <g> lot of insider still not for sale. Company is forecasting a consensus earnings growth estimate of 28.5 % for next year. Both appear to be fairly valued to me right now. I just took a quick look. Just some thoughts. Cary