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Technology Stocks : TALX (TALX)

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To: Pirinolo who wrote (21)	10/21/1997 2:06:00 AM
From: SC	Read Replies (1) of 93

Hi, I bought it already at a little above 8. Here are my comments: Althought their current PE is high (114.30), I didn't dig the old news but it looks like the high PE is the result of some one time event (while revenue remained stable or up quarter to quarter, a big dip to negative earning only in the last 4th quarter), some purchase/acquisition? Here is the reasons I bought it (based on what I saw from Microsoft Investor, quick look at their web site and some are my guesses): PE for 98 is only 22.2. Its estimated growth for the next 5 years is quite/very high (>= 35%, not sure how accurate with only 2 analysts following). They have no long term debt. Reasonable price/book, price/sales ratio. For the the type of business they are in, it seems that after starting to profit from their initial investment, they should be able to increase profit margins (currently very low)and to expand their business with low cost and low capital requirement(mostly software and internet server hardware cost). They could easily use/modify their existing technologies for new business products/servces/values for their existing and new customers. I am most impressed with the big business customers they got so far including the latest Microsoft. Their web site also said that they make their products with with SAP and PSFT software which are most successful with big business customers. Possible acquisition target? One thing I am not sure is who and how good their competitions are. The risk could be the easy entrance of competitors to take their business. Not sure how good could they be to distinguish themselves in services and technologies. Would like to hear others' opinions and/or corrections. Especially why they are downgraded lately... some news not posted here? Shawn

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