Harmonic Lightwaves (HLIT) Message Board

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Technology Stocks : Harmonic Lightwaves (HLIT)

HLIT 9.505

-0.4%

10:54 AM EST

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To: Gary who wrote (2866)	7/29/1999 1:32:00 PM
From: Greg Jung	Read Replies (1) of 4134

Gary the earnings may increase much faster than revenue growth, since they are coming out of a break-even situation, to some extent the gross profits can expand without a corresponding expansion of overhead expenses, i.e. they've been at capacity to sell 100 boxes per month but only selling 20, when the customers now want 80 then a dramatic earnings increase can occur. So the stock price presumes a high net margin and a sustained business. I don't know if the price is justified on that basis, but it is possible. In this market however there are several exaggerated market caps i.e. for the recent IPOs, Qualcomm, IBM, etc. HLIT may be another one but I reserve judgement for lack of time.

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