Drexler Technology is an amazing value as a long term buy in the tech sector. They are the gorilla in the exploding optical memory card storage business, holding 85% of the world market share. They also hold 92 U.S. and international patents on their state of the art technology.
This stock is finally being discovered.
It shot up 60% last week on 600% increase in volume.
Yet it still has a PE in the low 30s, compared to
EMC with a PE of 128. Drexler's Earings per share (EPS)
grew 40% last quarter.
Drexler has a Return on Equity of 30% and an amazing
Net Profit Margin of 29%! Many high flying technology and internet stocks have gone from 20 to 200 in 1 year with
No profits and No return on equity,or PEs between 100 &400.
The only reason Drexler hasn't fully exploded yet is because only 15% of the shares are owned by mutual funds.
They are usually slow to the party, but Vanguard is in.
This last year Drexler sold 4 million LaserCards. Next year they are gearing up to sell 11 million cards.
Their optical storage system on a credit card is incredibly flexible and has state of the art encryption safeguards, including hologram pictures.
Drexler is currently making cards for the
U.S. Immigration Service, and are apparently the only qualified bidder on a 500,000/mo. contract for 5 years for laser immigration cards scheduled to be issued in May, 2000.
Laser Card has unlimited potential applications including:
portable service information cards, already in use by Honda, portable clinical medical records storage cards carrying complex test information in use by Visx, a Concierge Card program just announced with Unisys to speed millions of travelers through airports with greater speed and security, state of the art credit cards with 4mb. of optical storage,driver licenses with information stored on it,
portable business to business, and business to commerce
optical storage cards with state of the art digital security.
Drexler Technology (DRXR on the Nasdaq) is a cutting edge, highly profitable technology company that is a great value and should be selling within the next year at round
200, rather than its current price around 16. |
