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Technology Stocks : CGRM Centigram

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To: Patrick Chalfant who wrote (4)8/22/1996 6:36:00 PM
From: Narasimha Reddy Kamma   of 333
 
Hi,
I have followed the company for couple of years. They had poor earnings for the past few quarters because of expansion of sales force and R&D expenses. They also seem to have had delay in the product release. Every time stock hits $20, I feel it will break away from the pack and go up. But no awail.

I like the company on the fundamentas basis. I do not know their cost structure recently. If they contain costs, they could improve their bottom line. With the new product release, they may see growth.

Comany has a book value of $11.5 and is selling at $13 which is cheap on the valuation basis. The stock should trade higher if they show improvement in ther bottom line and some growth both in the revenues and earnings.

Reddy
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