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Technology Stocks : Hello Direct (HELO) - an overlooked internet beneficiary

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To: gary who wrote (110)10/15/1998 5:31:00 PM
From: Sid Turtlman  Read Replies (1) of 153
 
To hear a tape of the conference call, starting about 6:30PM EDT and available for about 24 hours, dial (888) 266-2086, and type in the code 1049471 when asked.

The numbers were decent, I thought. Sales growth was anemic, but last year the company was selling hundreds of additional, low margin products that it no longer carries. So even though there was little sales growth, the higher profit margin on the mostly products that remain is what caused the growth in earnings.

The company expects revenue growth to accelerate from here, reaching the 15-20% range by Q1 1999. If HELO can keep to that track, we are probably looking at EPS of at least $0.70 next year, and probably higher. I still say this is a double digit stock next year, unless we head into a really bad recession.
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