From the Jan. 1998 issue of SMART MONEY magazine,
"Update '97: In all the right places," pages 104 - 105,
by Jersey Gilbert.
"Our "worst" call was Comverse Technology, which provides enhancements
for wireless phone service. Uncertainty about the impact of its
merger with Boston Technology, which provides similar phone-service
enhancements to wire-based customers, brought Comverse's price down
30 percent from a $54 high in September. Despite that, investors
gained 13.4 percent for the 12 months. We think the market
overreacted to the Asian market exposure that Boston Tech brings
to the deal. To be sure, 26 percent of the Massachusetts firm's
revenue came from Asia last year, but only 4 percent of that was
from Southeast Asia. The stock-price pullback leaves Comverse
about as good a value play as it was last year at this time.
Consider sticking with it."
Comverse Technology Nokia
$33.13 = Price on 11/21/96, $57.75
$37.56 = Price on 11/21/97, $87.69
13.4 %= Percent change 51.8 %
"If you've got Nokia (up 51.8 percent) or Allstate (up 45.3 percent),
you might also benefit from holding your shares for 18 months,
especially if you're in a high tax bracket." |
