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Technology Stocks : Equinox Systems (EQNX)

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To: Gihan Karunaratne who wrote (261)1/28/1998 3:53:00 PM
From: Quad Sevens   of 765
 
<<< Noticed that the number of shares outstanding for Q4 is down by about 10%. This would account for Q4 EPS coming $0.02 ahead of consensus $0.33. Should I be concerned? >>>

First, I bet the consensus was for basic earnings and not diluted earnings. If true, EQNX beat estimates by 6 cents. Second, the analysts knew about the share buyback because the company has been publicizing it (as they should).

Comment on the revenues: Year over year they are up only 14.5%; last quarter they are up 35%!! That's impressive.

The balance sheet is pristine--no long term debt. Look at the cash: 4.32/sh.

The stock is not a classical value play with a trailing PE of about 19 and price to sales ratio of 2.6. But good businesses rarely are.

Wade
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