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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: mrc who wrote (20231)12/22/1998 7:55:00 AM
From: Jenna  Read Replies (2) of 120523
 
SPYG..I did mention that it's in a longer term portfolio.. whenever I 'messed' with this portfolio I also lost good potential profit. I moved out VRSN and NSOL and this time I'm staying put with SPYG.

Spyglass, an Internet device market solutions provider, recently reported results for its fourth quarter and fiscal 1998. Services grew at an extraordinary rate and accounted for 50% of total revenues, compared with 36% a year ago. Analysts expect the service margins to be in the 55% range going forward with a rate of 72% for fiscal 1999.

The thing that attracted me to SPYG was the partnership with General Instrument, an old favorite of mine. both companies will develop and integrate new applicatons for the cable set-top box market. The provides SPYG with a 20 million in revenue over the next 3 years.

In addition SPYG has 'relationships with GI, LU, MOT, and others.. These companies taking SPYG so seriously is a boon to SPYG.

. Looking ahead, Spyglass should report its first profit since 1996 in the current quarter ending December. Our Q1/99 diluted EPS estimate is $0.01. On an operating basis, we estimate a
return to profitability during its fiscal second quarter. Our estimate for fiscal 1999 remains at $0.18 with
revenues growing to just under $31 million, a 50% gain from the prior year. Analsysts rate this stock a strong buy with 12 month target of $30 a share. Personally i think that target could be reached way before then.
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