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Technology Stocks : FSII - The Worst is Over?

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To: ccryder who wrote (1410)9/2/1997 1:04:00 AM
From: Donald Wennerstrom   of 2754
 
I agree with you that UTEK looks better now than FSII, although both
companies need to perform in the relatively near term for the share
prices to go much higher - particularly FSII. I went back six
quarters for each stock and tabulated sales and EPS. A simple table
of the results is shown below: Quarter "1" is the most recent
quarter, Quarter "6" the most distant.



FSII UTEK
QUARTER EPS SALES EPS SALES
6 0.37 75 0.41 56
5 0.25 67 0.44 52
4 0.28 91 0.42 47
3 0.18 67 0.40 44
2 0.08 60 0.21 39
1 -0.12 51 0.27 38

Note, that in general, both sales and EPS have been contracting.
Other companies have done the same it's true, but the trend has
been there a relatively long time. In FSII's case, the EPS
down turn has been severe. The present estimates for earnings are:


SYMBOL FY-97 FY-98
FSII 0.20 0.73
UTEK 1.16 1.52

In FSII's case, the number is quite small. Hopefully those numbers
will start to increase in the near future instead of decrease as they
have been over the last few months. The recent trend is shown in the
following table.


SYMBOL DATE EST DATE EST
FSII 04/01/97 0.52 08/08/97 0.21
UTEK 03/18/97 1.63 07/29/97 1.21

I think this is what has slowed the price gain of FSII and UTEK the
most over the last few months compared to some of the other stocks.
Both stocks have had continual price revisions downward over the
periods shown in the table. The high gaining stocks have had just
the reverse - rising earnings estimates(for the most part).

Regards,

Don W.
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