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Technology Stocks : GenRad Inc.(GEN) entering the ADSL market!
GEN 25.74+1.1%Nov 7 9:30 AM EST

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To: peter coelho who wrote (2)10/27/1996 7:47:00 AM
From: Charles Smithers   of 283
 
pc-

GEN has beaten the company's own forecasts for the last three years. Also realize that until recently, the company grew earnings with virtually no increase in revenues -- cost savings as a result of restructing. As well, because of its prior history of losses, the company is paying very little in the way of taxes (may effect the multiple).

For next year, the company should have revs of $235 million (up from $180 or so) and I don't see how they can earn less than $1.40. Jim Lyons is a miracle worker.

The key to this stock is whether the market prices it as a software company (which I think it should) or as a box maker like Teradyne.

Own it.

cfsiii
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