Printronix(PTNX) Message Board

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Technology Stocks : Printronix(PTNX)

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To: Anatole Kulick who wrote (55)	7/10/1997 7:03:00 PM
From: David Aegis	of 113

Anatole: Top line growth refers to sales growth, since sales is the top line of the income statement. This is in contrast to bottom line growth, which refers to net income or earnings per share growth. Bottom line growth can come from either sales increase (and corresponding economies of scale), or it can come from cost cutting. The single digit top line growth and lack of management confidence in getting operating expenses down to the 18% range do not indicate to me that 1998 will be another year of 30%+ EPS growth. Remember that 1996 had depressed earnings due to the product transition. This stock does not deserve a P/E multiple of 30. It does have a dominant market share and steady growth prospects, which I think makes it worth somewhere in the low or maybe mid 20's. PTNX traded up as high as 18 1/4 in early morning trading on Wednesday. I don't know why the stock pulled back so quickly after that buy order went through. Someone must have neglected to put a limit price on their buy order and got bagged by their broker. --David

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