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Technology Stocks : Altron
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To: Phil Fischer who wrote (6)3/7/1998 1:50:00 PM
From: rich evans   of 26
 
It is time to respond to keep this thread going. ALTRON seemed to correct its revenue direction in Q4 at 47 million. But couldn't respond with margins do to capacity expansion and underutilization and the costs of their new sales/marketing efforts. Hopefully they will get their net margins back to 10% with revenues increasing. But I notice that others see the profits in backplanes and are or considering entering the area. So I don't know whether these margins and anticipated growth can continue. I do feel more comfortable with a ALTRON at 15 time earnings and 1.3 PSR over the SANM competitor which is much more expensive stock. But as others have commented this could be a mistake as one should invest in the company with the better management and strategy for growth over the company with better valuations which is not moving forward. SANM has partnered with the best and fastest growing customers and could be swept ahead with them. Lets hope ALTRON can respond to the challanges. HDCO for example in their neck of the woods has two sites on the east and west coast for backplance assembly and did 19.2 million last quarter and growing at 15+%. In my opinion HDCO shoould buy ALTRON. But they will need to issue more stock first to get their balance sheet back in shape after the CCIR acquisition and can't at the low stock price existing right now. Oh well, wait and see.

Rich
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