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Technology Stocks : Dialogic ready to soar, funds buying

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To: Bill Turk who wrote ()11/9/1998 3:33:00 PM
From: Roy F  Read Replies (1) of 674
 
RESEARCH ALERT-Dain starts network tech companies

November 9, 1998 02:57 PM
CHICAGO, Nov 9 (Reuters) - Dain Rauscher Wessels said Monday it initiated coverage of three network technology companies: Natural MicroSystems Corp. NMSS , Dialogic Corp. DLGC and Brooktrout Technology Inc. BRKT .

-- Says in report it starts Natural MicroSystems with neutral-aggressive rating, Dialogic with buy-aggressive and Brooktrout with buy-aggressive.

-- Says enthusiastic about Natural MicroSystems' long term potential but prefers to wait on sidelines "until the company can post a clear return to operating profitability" before recommending purchase of the stock.

-- Shares up 1-3/16 at 12-13/16 on Nasdaq.

-- Dain says has $39 share price target for Dialogic, based on 17 times its 1999 earnings per share estimate of $1.75.

-- Says Dialogic is dominant in the voice and fax board market, which is growing at 20 to 25 percent annually.

-- Shares off 9/16 at 22-1/8 on Nasdaq.

-- Dain says that over the next 12 to 18 months, Brooktrout's growth will be mainly driven by growth in the LAN-based fax business but other product lines could post "meaningful" growth over the intermediate to long term.

-- Says $20 share price target it based on about 27 times its 1999 earnings per share estimate of $0.75.

-- Shares off 1/8 at 16-3/8 on Nasdaq.

((Chicago equities news, 312 408 8787, chicago.equities.newsroom@reuters.com))

REUTERS
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