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Technology Stocks : Vicor Corp.
VICR 90.73-0.8%Oct 31 9:30 AM EDT

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To: Stan Howe who wrote (6)10/22/1996 12:22:00 PM
From: Alan A. Ioffredo   of 118
 
I attended Vicor's June shareholder meeting. At that time CEO Patrizio Vinciarelli suggested that corp revenues and earnings would not ramp up substantially until second or third quarter of '97. Yes there is a lot of expectation built into the share price but the company has a stellar balance sheet (nearly $70 mil in cash) with no long term debt.
Its manufacturing facility is ready to go; Vicor must now wait for its customers to incorporate its new products into their designs...a process that can take months.
Finally, a substantial amount of the stock is held by insiders and employees...this helps to explain how it can sustain a high multiple while earnings growth temporarily lags. By the way, the existing product line continues to sell.
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