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Technology Stocks : Equinox Systems (EQNX)

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To: Scott H. Davis who wrote (235)12/18/1997 8:24:00 AM
From: HeyRainier  Read Replies (2) of 765
 
Scott, I just realized you are absolutely correct! Forgive me. My report was based on the earnings record as outlined by Baseline: every quarter they put out the company's earnings relative to estimates and plot a histogram relative to expectations. In my research, when I looked at EQNX's file all I saw were the figures that prompted me to provide that unbroken earnings streak.

After looking back and thinking about how this could be, I've come to the conclusion that because EQNX management guided future expectations when they said they wouldn't meet them (in December of 1996), the figure on Baselines records must have been the earnings record relative to the newly revised estimates. It would greatly aid current and future investors if at least an earnings revision side note had been included, or else you'll end up with more people like myself who could potentially be mislead. If that information doesn't somehow get included, then the reliability of Baseline's information could be severely undermined, IMO. However, the relative stability and growth of EQNX's past figures still do remain attractive, and with the stock buyback program still in effect, that will continue to cushion earnings (and thus the stock price) in future quarters to come.

Regards,

Rainier
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