Tuesday, July 31, 2007

APAC Customer Services Inc.

APAC Customer Services Inc. is a NASDAQ listed security that has been trading in a range between $1.96 and $5.18 over the past year. With 50,092,280 shares outstanding, a recent price of $2.51 gives a total market capitalization of $121,223,321. While there are certainly larger companies, APAC Customer Services Inc. has definitely earned its place in the pack. Last year, APAC Customer Services Inc. created $-0.30 in earnings for every share outstanding.

APAC Customer Services Inc. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, APAC Customer Services Inc. is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.

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