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Technology Stocks : Cognitronics (AMEX: CGN)

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To: JakeStraw who wrote (124)7/31/1998 12:17:00 PM
From: waxman  Read Replies (1) of 142
 
Earnings of $0.30 is pretty damn good considering how badly the stock has been trashed. I was beginning to wonder if they were gonna even break-even for the quarter. The biggest problems seem to be that 1) domestic sales are weakening 2) the prospects for signing-up Mexico are unclear, 3) and the year-over-year comparisons for Q2 are poor (lower revenues and lower EPS).

The good news is that in Q3 1997,EPS was $0.24, so if we can surpass that for Q3 1998, the investment community might once again understand that this company is indeed growing. But it seems only with that fact established will the PE expand over 10. Right now it is threatening to dip under 8 as the share price is free-falling towards $11.

Anyone have a guess where support might kick-in?
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