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Technology Stocks : Printronix(PTNX)

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To: DELT1970 who wrote (85)5/20/1998 10:51:00 AM
From: David Aegis  Read Replies (1) of 113
 
George, IBES has PTNX's 3-5 year EPS growth rate at 15%. Sales were flattish in 1997 due to a reduction in inventories within the distribution channel, led by IBM's move to a just-in-time inventory model. I think sales growth will return to the historical 10% range in FY99 (FYE 3/99). ROE on a fully taxed basis is around 15%, but has varied from year to year. The company also had sloppy financial results in 1995 when it went through a product transition from its Seies 4 line to its Series 5 line and customers stopped ordering Series 4's while they waited for the Series 5 printers to become available.

IMHO, this is a solid company. Solid balance sheet. Management focused on leveraging the core competency in low cost industrial printing solutions. Dominant market share (about 60%) in the industrial, line matrix printing niche. I hope you'll join me here and lend your insight and analysis.

--David
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