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Technology Stocks : Vicon Industries ( VII )
VII 0.206-24.6%Jul 11 5:00 PM EST

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To: Hank who wrote (72)4/21/1998 12:59:00 PM
From: Neil Kalton  Read Replies (1) of 118
 
Hank,
Any thoughts on today's earnings of $.35? The revenue numbers were a little disappointing with a 1% decrease from Q198. However, the improving gross margins and the 14% rise in backlog from the end of Q1 bode well.

With the impending secondary it should be noted that there will be some dilution in the second half of 1998. However, even with the secondary VII should have no problems achieving roughly $1.10 to $1.15 per share in 1998. At $12, VII has a current PE of around 12 and a forward PE of around 10 - decidedly within the lower ranges of its historic PE levels. I can't help but think that once the market digests the secondary this one will move to the $14-16 range fairly quickly.

-nk
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