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Technology Stocks : Spectrum Signal Processing (SSPI)

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To: joseph T. Drago who wrote (187)9/21/1997 6:58:00 PM
From: Sarah Chapin   of 4400
 
Joseph,

1. Even though the DowJones article stated that Spectrum earned
.23 in 1996 on C$13million, that is not correct. Revenues in
1996 were C$36million. C$13million were the revenues from the
4th quarter of 1996, not the entire year. Go back and read
the company's press releases.

2. The stock achieved it's high in 1995, not 1996.

3. When calculating a p/e multiple on this stock, you can not use
Canadian earnings and a US stock price. Let's stick to comparing
apples with apples.

4. DSPG rose to current levels due to several major brokerage firms
initiating coverage within the past 6 weeks or so.

5. Spectrum does not issue earnings estimates. Zandberg's numbers
for 1997 and 1998 are very conserative and are based on his model
which has not been updated since Spring of 1997.
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