Glenayre Technologies(GEMS)- a pure cellular PCS play? Message Board

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Technology Stocks : Glenayre Technologies(GEMS)- a pure cellular PCS play?

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To: Jeffrey L. Henken who wrote (1481)	7/20/1997 10:11:00 PM
From: Leo Francis	of 3431

Jeff, yes, GEMS said in their last 10Q, that domestic sales would not meet 1996 levels. I am trying to determine how much international and the other two business units must increase to top recent 18% sales gains. Last Q, the increase in sales was primarily due to increased delivery of the Company's MVP systems and microwave radio products. The two "minor" business units increased sales by 13 million, while the "major" business unit (paging) increased sales only 4 million. It appears to me, that GEMS will be flat in paging, but will nearly double sales in the other two units this Q. This works out to be about 20% for the total company. And with GEMS commitment to control expenses, profits should surge.(.27-.32 eps for this Q is my forecast) I think its fairly safe to value GEMS with a PE of 20. I see $25 as fair valuation and a very reasonable short term target price. Good Trading. LF

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