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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: AlienTech who wrote (6729)3/29/1998 2:17:00 PM
From: Crossy  Read Replies (1) of 120523
 
AlienTech,
sorry for my igonrance <G>. Didn't know that AT is Your shortcut - I thought about Alltell. I seem to owe You an apology <G>.

FYI, I owned ANDW in the past and made some nice shortterm (2-3 month) gains on it. ANDW is a nice fundamental value. In telecom equipment, PSR of 2.05 is not an excessive valuation. It's no deep discount either but it got good earnings quality instead. Earnings should be announced April 16th.

ANDW stated that this quarterly will be 10-15% lower than last year's both in earnings AND sales: last year: $202 million, 0.28 earnings

This year: range:
Sales: $170 - 180 million
earnings: 0.23 - 0.25

The earnings consensus is 0.25 dollars this quarter. The warning was issued March 10th, quarter closes end of March. This means: if March was as sluggish as Jan-Feb then 0.23 should be the more conservative target. But there's a good chance that it reaches the consensus or exceeds it - IMO this just depends at month March.

Volatility is very low in ANDW compared to many other techstocks, Positive is also that $18-19 area is an old support level, a congestion zone. Next support zone: $14-15 area, but it's quite unlikely that this could be touched again. Next resisitance area: $30 level. However, one caveat: accumulation/distribution. Look that the volume went up when the stock plunged from the $25 level. This needs some weeks to work out, possibly the next 2. From this I think it COULD be an earnigns play..

best wishes
CROSSY
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