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Technology Stocks : Echelon Corporation (ELON)
ELON 21.88+10.1%Oct 6 5:00 PM EST

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To: hueyone who wrote (1747)4/6/2000 12:53:00 PM
From: spiral3  Read Replies (2) of 3076
 
hueyone: links to Sun/ Echelon & opinion on Financial strength.

I respect your decision to play the game according to your own rules, but beg to differ with your interpretation that there is zero underlying strength in the income statement and balance sheet. I feel that this is a gross misstatement. While the company is not yet showing a profit, the eps has gone from -$0.24 to -$0.12 over the last yr and the Gross profit margin at 60.2% has increased compared to prior periods. Your previous post acknowledged a steady upward trend with respect to both revenues and earnings. Furthermore the Balance Sheet shows zero long term debt, minimal exposure to interest rate risk and a current ratio of 5.8. How this can be construed to be "zero strength" is quite frankly beyond me. echelon.com

Detailed numbers aside, Elon's valuation is heavily biased by expectations of future growth. A quick look at these expectations show a consensus for earnings this year of $0.01 and for next yr of $0.19. biz.yahoo.com. The new iLon Cisco certified server is expected to heavily impact future earnings, and I understand a number of new product releases can be expected this year. Unfortunately from what I can gather the conference call is no longer available.

here are links to Sun / Echelon involvement. search.echelon.com
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