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Technology Stocks : Proteon
PTON 7.440-2.9%Nov 10 3:59 PM EST

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To: Joseph E. Caiazzo who wrote (194)4/5/1997 11:45:00 PM
From: Jim Malone   of 512
 
I can't say for certain that we both will be successful with this company but I have a hunch about this company. I also just don't see a lot of downside risk at a buck fifty or sixty per share. Granted it could go lower with a dismal earnings report in a couple of weeks but my hunch is the earnings report will not be dismal, with the restructuring that has taken place I don't see a huge loss this quarter and I think you are right in that they will still look good in the cash area. In looking at the recent news on the expansion of their product line my hunch is that we will see revenue increases over the next couple of quarters, unless they just can't sell any of their remote access products and my hunch is they will have some success, and any success at all will make the stock worth more than the current price. Also starting in this current second quarter the comparisons over last years results should be easier to improve upon. In last years second quarter revenues were in in the 10 million dollar range and this should be an achievable target to beat.
Even if their expectations for their remote access strategy does not play and they have to either sell or merge with a larger player I would bet the technology they have developed will be worth at least 5 bucks a share if not more. Right now this company is valued at under 25 million in the marketplace and two to three times this would be pocketchange for a larger player looking for solid remote access products to add to a product line. I see minimal risk here, it may take a few months to play out but I think it will improve from here.
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