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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 (5)11/18/1996 1:21:00 PM
From: Charles Smithers   of 283
 
pc-

Clearly at these levels we are running into some valuation problems. Consensus for this year is $1.05 and $1.30 for next putting this thing at almost 18 times next years earnings -- there ain't many box companies trading at those kind of valuations.

If the company can beat #'s for Q4 (I think the can) the stock probably goes to $26. My estimate for 1997 is $1.45 so maybe $30 is not out of the question. My understanding is that Fidelity and Putnam are competing for the stock so I don't think there is too much downside.

Watch the technicals here; they seem to work well on the big stocks but not so well on the midcaps.

cfsiii

There does not seem to be much short interest so I don't think that plays out.
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