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Technology Stocks : Praegitzer Industries (PGTZ)

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To: Paul Chiu who wrote (7)5/24/1996 7:36:00 PM
From: Lee Hsu   of 196
 
There was an article about this company on Investor Business Daily on 5/22 and caused the stock riing more than a buck. Though I did not read the article, my friend told me that their customers are Intel, HP, Compaq... all big guys. I was impressed by their earning and sales growth and checked earning forcast for the company. There are 2 analysts giving the stock a buy rating. The predicted earning growth will be more than 60 percent while the PE is only 16.6. There is plenty of room for the stock to grow. I think the quality of service is very important for their success (go to their homepage and check it out). Another positive factor is that CEO, Mr. Praegitzer bought more than a million shares of the stocks 2 days after IPO at 8.84 and brought the total holdings to 8 million shares. I am not sure about the competitors of this company, but at current level, the downside risk is small.

Obviously, the company is not well known on the street and the volumn is quite thin now, but I believe more and more people will discover this company.

Lee
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