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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

672.0. "American Power Conversion" by WHOS01::SOUSA () Wed Feb 02 1994 13:07

    
    Anyone have any thoughts on American Power Conversion (APCC on NASDAQ)?
    It's been an incredible stock to own over the last few years (split 4
    times in the past three years I believe) but I'm curious about the
    future.  It also has the highest level of short sales on the NASDAQ
    (about 14 million shares shorted!)
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672.1wear insulated glovesNOVA::FINNERTYSell high, buy lowWed Feb 02 1994 15:1526
    
    American Power is in the unexciting but profitable business of
    making power supplies, and they have benefitted greatly from the
    increase in PC sales.
    
    Evidently they don't have any proprietary technology, and it is
    mostly a bunch of capacitors and inductors inside the box... not
    high tech and no significant barriers to competition.  This has
    not been overlooked by the short sellers, who continue to lose
    money on American Power as it rachets ever upward (perhaps even
    because of them)...  at least it was ever-upward last time I
    checked.
    
    They have a strong balance sheet and they run a good company;
    on the other hand, their valuation should be compared with the
    total anticipated market for power supplies, and the liklihood
    that they will be able to build or even maintain market share,
    given that (a) profits invite competition, and (b) there are
    no significant barriers to entry, should be factored into your
    decision.
    
    I don't own any American Power, but if I did, I'd sell some to
    rebalance my portfolio (a.k.a. take some profits), but I'd
    continue to hold a smaller amount for the long term.
    
    fwiw
672.2might wanted to research deeper.ISLNDS::HUTNICKThu Feb 03 1994 12:5110
    .1 tells a lot of truth.....from a distance APCC has more downsize risk
    than upside potential. Vicor has been going after more market share and
    AMCC may have seen their day. I've watched AMCC over the past year do
    well. I, for one, must personally conclude that it another one of those
    stocks that I need to let go out of my mind. I don't like chasing
    something that many people already own.
    
    p.s. might want to check it's P/E and it's earnings/share trends.
    
    						Mark
672.3APCC Cabot Market letter VicorDABEAN::NEARYThu Feb 03 1994 16:4814
    I DO know that it's been in the Cabot Marketletter model portfolio for
    the last few years. (I've read this letter at Andover Ma. public
    library - I don't subscribe) It's gone up 1000-1500% since he bought
    it. As of last month, it was one of the few stocks he still holds. 
    (he's bearish on the market as a whole).
    
    re -.1
    
    (Vicor's headquarters on Frontage Road in Andover Ma.)
    I was looking at buying Vicor last year at $15. I had them send me an
    annual report,etc and in reading through it I got the impression that
    they are suppliers to end users, but not retailers. (Like Intel,TI,etc)
    So I would be surprised to see them in the retail business.
    
672.4Any new thoughts?WHOS01::SOUSAFri Sep 16 1994 13:364
    
    Well, it seems like some of the bears on this stock have probably made
    some money.  It's down from 30 to about 19 or so.  Anyone have any
    comments on it at these levels??
672.5APCC is OK, RIGHT NOW....POBOX::PATELSun Sep 18 1994 16:4713
    I bought some APCC based solely on Technicals and the fact that they
    are selling their units more to RESELLERS and Internationally than it's
    competitors.  Their SNMP based unit came out in the middle of this year
    after resolving some issues, so it now equal to it's competitors. 
    
    I will sell aas sson as the technical picture deteriorates.  My wife
    told me that it closed at 19 3/4 (+/-), up from previous day, even
    though the market was down.  She checked for Dow stories, but there
    were none!!!!. 
    
    That's my 2 cents....
    
    Ken