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Technology Stocks : ALPH - Alphanet

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To: wynn quon who wrote (45)11/7/1997 9:20:00 AM
From: sam hra  Read Replies (1) of 62
 
Hello all!
When I looked at this company a while ago I made a few conclusions:
(1) Their sales growth is mainly hardware related which has very low margins.
(2) Their buisness plan (as many others) is to move to a more service realted business.
(3) They are spreading themselves much too thin. They are not focusing on any one core competency. For example, they started up a personnel agency. This was a mistake in my view.
(4) They were able to get a very good manager from SAP to be a part of their team.
OVerall I think that the reason that they are not getting the igh PE is due to the very low profit margin.

Just my opinion.
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