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Technology Stocks : Celeritek(CLTK)- earnings up 1300%

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To: Richard H. who wrote (172)5/24/1998 1:15:00 PM
From: Ted The Technician   of 212
 
Richard,

Thanks for the analysis.
Let me add to yours...
- SG&A & research increased at a faster rate than revenues.
- Company expects next quarter's earnings to be flat or less
than the last quarter's earnings.
- Last quarter's earnings was less than last year's comparable
quarter's earnings.
- Company seems to be caught in a ramping-up investment phase
for at least the next quarter => lower earnings.

- Number of shares outstanding relatively stable.
- Good revenue growth.

I believe this to be a good value play - but it probably won't
take off until its revenue growth exceeds its growth in costs -
which probably won't happen for the next several months.

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