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Technology Stocks : Cognitronics (AMEX: CGN)

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To: Neil Kalton who wrote (2)4/29/1997 1:41:00 PM
From: JakeStraw   of 142
 
NK, CGN came across my radar with their 47% increase in sales and over 300% increase in net income compared to the same period last year. Revenues were around 16% higher than last quarter which is good also.

I was glad to see the increase in sales coming from domestic operations and not the British telecommunications market, as they relied on that end to heavily in the past.

The $4M order backlog should help results into the next couple of quarters.

Zacks has a fiscal year e.p.s. estimate @ .60. That means that at $6 this stock trades at a forward p/e of only 10.

BTW, do you know who their major domestic customer are?

Finally they really need to start to show a consistent rise in sales & earnings. Too many peaks & valleys.

P.S.- If you wnat some other ideas in the communications sector check out the following:

Coherent Communication (CPRD)
Computer Products (CPRD)
Teledata (TLDCF)
Wireless Telecom (WTT)
Vari-L (VARL)

and more of a special situation play - AML Communications (AMLJ)

Check them all out and let me know what you think.
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