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Technology Stocks : FSII - The Worst is Over?

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To: Sparky65 who wrote (1111)6/30/1997 6:37:00 PM
From: Donald Wennerstrom   of 2754
 
Sparky65,

I couldn't agree with you more on your analysis. I believe the stock will move up slowly until more becomes known about FY-98 earnings. Of course, as we have said many times, new, large orders are necessary for that to happen.

Perception is what the market is about. With a little bit of good news the brokers will push the stock. As you point out, the P/E could go from 20 to 30 very easily. Not many of the semi stocks are carrying that kind of multiple right now, but there are a few.

What I am really hoping for is a good, honest increase in the FY-98 earnings. Then we can get the benefit of increased earnings, plus a P/E of 30.

Regards,

Don W.
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