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Technology Stocks : SLNK - Spectralink wireless PBX

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To: Bobby Yellin who wrote (23)9/22/1999 2:53:00 PM
From: Steven Yang  Read Replies (1) of 87
 
Buying opportunity or negative surprise coming?

SLNK has fallen more than 40% from its 52wk high of $7-3/8 after 99Q2 earning release. Is this a great buying opportunity or some negative surprise is coming?

As for the company fundamentals, things look very good. SLNK has a lot of cash, profittable, very health gross margin, in a market that is growing rapidly. In addition, the new NetLink product will start to contribute to its sale and profit in 99Q3. Based on the analyst's estimate, it will make more than $0.25 for 1999, and more than $0.30 for 2000. Thus, this is a stock that is growing at 25% and is trading at p/e=15.

Do the sellers know something that we do not? If not, this has to be a great buying opportunity.

Steven

ps: I am long on SLNK, for disclosure.
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