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Technology Stocks : Golden Genesis (GGGO), formerly PCOM

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To: Don Devlin who wrote (71)11/21/1996 3:40:00 PM
From: PuddleGlum   of 145
 
Don-
We finally broke through 2 3/8 to the upside. My expectations for this equity have become quite modest over the past month or so. I think it'll support a p/e multiple of 25 IF they can prove that they're for real. Earnings for FY97 could come in at $.09 if sales rise 30% and margins don't move appreciably. That means $2.25, folks, so no excitement here. Possible upside items: margins improve significantly, the new majority owner (assuming there is one) is perceived positively, recent acquisitions and the United Solar marketing deal prove lucrative. Or maybe investors assign PCOM a 1.5 p/sales ratio, which moves us up to $3.

Any comments? Insight? Can you sense a bit of desperation here?

Steve
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