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Technology Stocks : EXABYTE - ANY FUTURE ???

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To: Dharmesh Vyas who wrote (6)11/22/1996 6:45:00 AM
From: Wil Faller   of 17
 
Exabyte is fairly valued. Look at the sales, very low growth does not deserve a very high PE in the technology marketplace. Exabyte will be lucky to Earn 75 cents for FY'96. Which already puts them at a PE much higher than there growth rate.

Take a look at there historical performance. I can't remember the last time they came even close to making earnings. Last quarter is a good example. Everything should have been great, Mammoth, Yen, ... and still not even close.

You could end up being correct that this stock will do well in '97, however, historically the money has been made trading exabyte. We all hope that this is the quarter they will put everything together or they introduce a new product and the price runs up. They announce earnings and the price comes back down.

And, no I do not own exabyte at the moment. However, if I can get it around 12 I will be happy to trade it one more time with no more than a 3 month time window on my position.
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