The Promise Of Action Point

ActionPoint (ACTP) is a real micro-cap, with a capitalization of just $25.5 million. The stock trades at 6 1/8, even though the company has yet to make a penny. Moreover, its principal software product is still being tested by select customers. Yet some savvy investors, including Fidelity, Vanguard, and Bessemer, have taken big stakes. What's so enticing about ActionPoint? "The company has a new product with huge potential that could generate big profits," says money manager Patrick Farley of Kopp Investment Advisors, which owns 386,000 ActionPoint shares that it acquired at around 11 3/4 apiece. In the month before the stock market's April fall, ActionPoint was trading as high as 34.

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