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Technology Stocks : SMIT (Schmitt Inds)likely to post 400% earnings gain YoY
SMIT 0.0155+3.3%Oct 14 2:00 PM EST

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To: Michael A. Johnson who wrote (94)1/12/1997 1:52:00 AM
From: PuddleGlum   of 276
 
Michael- I've read the company literature and I'm satisfied with what I see. Management appears capable, technology (so far as I can tell) looks like it indeed has an edge over the competition. The company is small, and therefore dicey, and they are very dependent on the edge they hold in both areas of technology. Even though I see 50% or so earnings growth for each of the next few years I am still hesitant to attach p/e multiples of 35-45 to the stock, because I doubt that the growth can be sustained for more than a few years (one might ask "What more do you want???). I will possibly take a position this week, as I am comfortable with anything under $12. Steve
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