GenRad Inc.(GEN) entering the ADSL market! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : GenRad Inc.(GEN) entering the ADSL market!

GEN 25.74

+1.1%

Nov 7 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext

To: George Hsieh who wrote ()	6/6/1996 8:49:00 AM
From: Charles Smithers	of 283

I have owned GenRad for the last three years. Over that time, Jim Lyons has orchastrated quite a turnaround. After ten years of losses Mr. Lyons was hired by the board to turn the company around. I sat with him in 1993 and he told me -- "we'll breakeven this year, do 25 cents in 94, 50 cents in 95 and 90 cents in 1996." The results == .05 in 93, .30 in 94 and .55 last year. I think they'll do $1.00 this year. He did it buy selling all irrelevent business, cutting the work force by 15%, a refocusing the company on its traditional businesses. GenRad makes two things -- diganostic equipment for printed circut boards and automobile diagnostic machines (primarily for Jaguar/Ford). Now that the turnaround is complete and the focus has shifted to growing the top line. There is some indication that Ford is considering GenRad's automobile diagnostic machine to replace HP as their domestic supplier -- that would be huge. This move into the ADSL market, though smaller in scope, is consistent with top line growth. This company remains a buy in my book. In the circut board business, there is a sense that the machines themselves are becoming less relevent compared to the software that runs them. GenRad has focused on the software side -- no need to buy a new machine just ship some a new CD with upgraded software. I think multiples are a bit higher for software companies. Stock may be a bit ahead of itself. I think 18 at the end of the year is a good target (unless something definative comes from Ford). 30 a year from now does not seem out of the question. cfsiii

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext