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Technology Stocks : American Power Conversion -- Ignore unavailable to you. Want to Upgrade?

To: JC Jaros who wrote (2083)	2/11/1999 9:31:00 PM
From: The Ox	Read Replies (1) \| Respond to of 2574

This is my opinion FWIW. There was a patent infringement lawsuit filed against APCC recently (or so I've heard through the grapevine). This has come at a time when the stock was basically at an all time high, the NASDAQ has been soaring and many have been calling for a correction in both the stock and the market. If you are a long term holder of this stock you will have held through many situations like this before. It should come as no surprise, IMO. I believe earnings were excellent and a split was announced. Y2K is bringing with it power concerns (only one of many evils people are losing sleep over). We should expect demand for APC's products to stay very strong, if not increase under the current paradigm ruled by the Y2K timetable. Reliable power solutions are a must whether you are a business, organization or an individual. Anyone that has a focus on the ever changing communications/telephone/computer/internet/cable paradigm shift can rely on APC to provide innovative, cost effective solutions. As a leader in the field, I expect APC to continue to perform like they have over the past couple of years. They have grown to over a billion in sales while sustaining growth in the high 20 percent range. Questions over APCC's valuation are appropriate. What multiple should/will the market assign to APC? On trailing or forward earnings? In a bull or bear market? I think 20 times last year's EPS should be the lowest end of the valuation curve but BDWIK? I don't want this to scare anyone as I believe that should be the absolute bottom. The market's not always logical or there maybe negative news that's not public at this time. Without bad news I think 27 or 28 times next FY's estimates is very fair if not down right cheap as long as the economy doesn't break down. I continue to be very bullish long term on APCC and I own the stock. This company has been a terrific investment in the past and I have no reason to believe that is going to change in the immediate future. If the NASDAQ corrects, like I believe it will in the not too distant future, then APCC can easily be caught in the undertow. For those looking to buy and hold, I would set a low target, put in my buy order for x shares, sit back and wait for it to come to you. The only problem with fishing....they might not be biting if you set the line to low. JMO, go A P C C. Michael