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Strategies & Market Trends : Undervalued Stocks = Low P/E to Growth Ratios

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To: AJ Berger who wrote (170)9/14/1997 10:05:00 PM
From: Mason Barge   of 297
 
AJ, this (VTCH) is a beauty, even though First Call only has their earnings growth for 1997 at about 19% estimated. I love this industry, though. It is regularly undervalued and I have made a bundle on systems integrators at various times. Wall Street just can't seem to grasp the difference between companies that retail computers (like CompUSA) and companies that install systems and make sure they work. I know at my business, a few extra bucks is worth it if the damn network just works like it's supposed to.

Also, Bell South is making a push into Brazil. It's my local phone company and I think quite highly of them (used to be a stockholder). Brazil is ready for significant technological infrastructure improvement, and they will certainly need this kind of service. I know the kind of cost-efficiency that can come from a good network, and how much you need customer support from a good company.

So, I think this looks like a terrific and undervalued business and am picking some up Monday. I don't know anything about the management, which bothers me, but I guess I'll learn as I go.
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