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Technology Stocks : Silicon Valley Group

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To: orkrious who wrote (1924)1/12/1999 9:13:00 AM
From: Ram Seetharaman  Read Replies (1) of 2946
 
I am looking at the 1-1-99, Summary of Advices and Index - The Value Line Investment Survey - Expanded Edition, page 38 - under "Bargain Basement Stocks". It refers to page no. 4265 (of the value line stock sheets) for SVGI. The following data are depicted for SVGI.

Percent Price to net working capital - 83 % (at a trading price of $ 11)
Current P/E ratio - 57.9 (at a trading price of $ 11)
Percent Price to Book Value - 61 % (at a trading price of $ 11)
Performance and Safety Rank - 4,4 (not good! - at the bottom tier!)
Beta - 1.3

Thus the book value is 11 /0.61 = $ 18.03, which is about right.

This is pretty recent and Value Line is fairly trustworthy for data.
They are conservative and are not the best place for aggressive stock picking!

Things will turn around for SVGI after summer 1999. But it is for sure a bargain basement stock!
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