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Technology Stocks : Saville Systems (SAVLY)

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To: Tom West who wrote (172)1/6/1999 12:53:00 AM
From: HG  Read Replies (1) of 261
 
Tom,

I decided to make SAVLY one of my picks for the 1st qtr of 1999. I bought in on Dec 28 at 18 1/4. Several things drew me to this stock the most notable was its' depressed price. Down from a high of $58.

But beyond that I considered the following
1. On Dec 23 Lehman Bros. started SAVLY at a Buy.
2. 9 brokers now rate SAVLY a strong or moderate Buy.
3. Revenue for 1996 53.9 million. 1997 107 million. 1998 through 3 qtrs 123 million.
4. Trailing 12 months profit 10.87%
5. ROE 17.81
6. ROA 13.59
7. Long term debt .01

The second qtr of 1998 was a disaster from a profit standpoint. But it must be recognized that SAVLY took a 18.8 million writeoff for R&D and that should not be recurring.

All in All SAVLY looked like an attractive play to me for the 1st Qtr of this year. I will long term hold SAVLY if I think the growth is there after that.

I found this thread after I purchased but also found that it was basically deserted. I had hoped that there were still some around so that we could share thoughts.

Obviously I find SAVLY attractive at these prices and I've listed some, not all, of my reasons. And I could be wrong.

Stay in touch if you decide to play this one.

Regards,

HG

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