The investor must keep abreast of changes taking place in the economy, the industry and the marketplace. Applied Magnetics is a leading supplier of magnetic recording heads used in computer disk and tape drives. Business is not good. Orders are being cancelled or rescheduled. The industry is plagued by high competition and severe overcapacity.
Safety is poor.
I would consider Applied Magnetics as another sale. Net profit margins have declined from 13.9 percent to 10.9 percent. I'd sell and switch. Little information is available on Detection Systems , a manufacturer of intruder detectors. What information is available shows a below-average quality stock with no growth of earnings.