(MONEY Magazine) – APEX PC SOLUTIONS Keeping the network humming along

Business: Apex makes computer equipment that enables companies to coordinate massive networks through a single machine. IBM, Dell, Compaq and Hewlett-Packard all package Apex products with their systems sales.

Opportunity: Internet expansion is creating strong growth in the market for servers that power websites. To maintain its technical edge, Redmond, Wash.-based Apex has doubled research-and-development spending this year. The company has beaten consensus earnings estimates for seven consecutive quarters.

Risk: Y2K worries may slow demand for hardware during the fourth quarter. --ETHAN JOHNSON

BERINGER WINE ESTATES Mass merchant goes upscale at the right time

Business: Napa Valley-based Beringer produces and imports premium and low-end wines. It controls 40% of the market for inexpensive white Zinfandels and sells more 750ml bottles of wine than any other vintner.

Opportunity: A grape glut is hurting white Zinfandel prices, but Beringer is shifting to the $7-to-$10 bottle range via its Founders' Estate label. Increased awareness of wine's purported health benefits should boost sales in the long term.

Risk: The effects of the grape glut may lower prices across the board. Investments in vineyards and inventory have led to a high 60% debt-to-capital ratio

--BRIAN P. MURPHY

ACTIVISION Game software maker goes global

Business: Activision is the second largest developer and distributor of PC- and console-based entertainment software.

Opportunity: Sales over the past 12 months are up 61% to $459 million. The Santa Monica, Calif. company puts out such bestsellers as Quake and Heavy Gear and has expanded aggressively in Europe by buying software distributors there. New titles, including a Star Wars release, along with a streamlined distribution network should help Activision score big this Christmas.

Risk: Mistakes in this industry are punished harshly. If Activision can't get a product out on time and bug-free, Wall Street will inflict pain. --B.P.M.