SI
SI
discoversearch

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 : Verilink, long term hold?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Baoho Chang who wrote (403)5/4/1998 2:45:00 AM
From: Dale Stempson   of 522
 
Baoho, I've made a number of VRLK purchases since last September and now hold a substantial long position. It's been interesting to see the recent break-out from the fives to eleven including some notable volume at times. I think the more recent pull-back to the eights reflects some healthy profit taking and we'll soon resume the move back up. If I wasn't maxed out in my holdings, I'd be buying more right now.

I am excited by the long term prospects for this company. If H&Q is correct with their calendar year '99 estimates of $0.49 EPS and $90.1 in revenues, we could see some very healthy returns on our investments. Although sometimes painful in the short-term, I also like their solid R&D allocation and the promise of new products in the next several quarters.

One of the items in the recent earnings press release that caught my attention was the product development and distribution relationship that Verilink has established with INS in Japan. I like the ties to Mitsui and NEC along with the financial support of Fujitsu and Hitachi. If I recall correctly, Verilink has had little or no sales in Japan, or the whole region for that matter. This would appear to be a good opportunity for them. (With seemingly no current expectations here yet, the possibility for some significant additions to sales offers the potential for an earnings surprise with little downside risk).

BTW, Do you (or anyone) happen to know anything more about this relationship? Was anything mentioned in the CC?

Regards - Dale
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News