SPYG in the mid-teens Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SPYG in the mid-teens

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: s palermo who wrote (124)	11/1/1996 4:00:00 PM
From: Khris Vogel	of 219

1) They haven't announced any development partners, so I suspect that they're bearing all the costs. As they appear to be confident in that this is the direction to go, that bodes well for SPYG's shareholders as the co. doesn't have to split the proceeds w/ other co.'s if R&D pays off. 2) I didn't get a definitive answer from the press release. The CFO said that losses were possible in the first two quarters due to the intense level of R&D being performed and the co. would likely return to earnings growth by 3Q. If that means that the bulk of the R&D would be completed by the end of the 2Q, or if that means that the co.'s increasing sales (and resulting gross profits) will offset the R&D by then, I don't know. Anybody have any thoughts on which? 3) The co. said that it's expecting at least a 50% increase in sales next year. Other than from the increased R&D costs, gross margins should improve due to economy of scales and the further absorption and effiencies from its past acquisitions. 4) Who knows? If the R&D results are very marketable, the co. would likely be that much more attractive. At this time, though, my feeling such speculation as to being acquired is based on wishes and not any hard news.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next