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Technology Stocks : Reliability Inc (REAL)
REAL 16.59+1.7%Jan 16 9:30 AM EST

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To: Cody Goebel who wrote (43)5/29/1997 9:47:00 AM
From: Christopher Brainard   of 542
 
Cody, I assume your comments mean move much from here, since the stock has ALREADY doubled in the last few months. My case for continued gains in the stock are based on simple VALUATION. The market finally realized that REAL was worth more than 3.9x estimated 1997 earnings. The company is in an industry whose BTB last month was 1.6+ Even after the current run the stock is still selling at a gaint 9.3x estimated 1997 earnings (and this estimate may prove concervative given the large stock buyback). Small stocks can remain undervalued for a long time, but sooner or later the market gets wise and things get evened up. I do not think another 20-30% gain in the stock is out of the question. Oh, and one other thing, Intel is one of their big customers and their backlog is at a record level!!! IMHO the 2nd quarter will be a monster quarter for them, well above estimates.

Chris ....
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