Glenayre Technologies(GEMS)- a pure cellular PCS play? Message Board

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Technology Stocks : Glenayre Technologies(GEMS)- a pure cellular PCS play?

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To: Machaon who wrote (2200)	10/23/1997 2:44:00 AM
From: 8bits	Read Replies (2) of 3431

Robert, >>- 9% earnings growth from last year. I counted a 22% revenue increase from last year's quarter and 14% for the 9 month period. Did I overlook something? >>- Basically flat revenues compared to 96JUN and 96DEC qtrs. Perhaps this is seasonal, also consider that MOT announced it's problems with the Asian paging market, one could assume that this has affected GEMS this quarter. At least they made their numbers. - Flat earnings growth sequentially The earnings growth was 20% before taxes, wonder why they were tagged so heavily? Also a sign that they are building for the future is R & D expenditures were up 39%, SG&A expenses up 25%, I see these increases as a positive sign meshing with the companies stated goals of long term expansion in overseas markets. >>- $3 million+ in interest income. This is about 14% of Pre-Tax Income. .... Perhaps not a big deal to some, but I like to factor out Interest Income. So, without Interest Income, GEMS is heading for earnings of about $.85 for the year, pre merger. At $16 per share, GEMS sell for about 19 times, or higher, 1997 forecasted earnings. In a more rational market I think this would be a consideration but in today's market this and outright creative accounting tricks with tech stocks tend to be ignored in today's market. The nonsense that USRX and COMS pulled should have creamed COMS. >>- Company is buying two other companies. Usually Wall Street is wary until positive impact is shown. I tend to agree with you on this. I think the announcement that will most negatively affect the stock near term is their book to bill dropping below one. Long term I think they are cheap (compared to the rest of the market) and are following they're blueprint for long term success. Short term I don't know. The way the stock moves around compared to the option premiums you could make money in either direction. Good Luck. Nick

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