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Technology Stocks : MENTOR GRAPHICS
MENT 37.250.0%Mar 31 5:00 PM EST

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To: Tom O'Brien who wrote (21)1/30/1997 9:24:00 PM
From: Judy Cohen   of 376
 
Hi Tom:

I agree about all the charges...made me nervous too.

Value Line says, "Management's acquisition strategy may pay off well by 19999-2001...Appreciation potential is sizable...". Their projections show 3/31 eps @ .10 and 6/30 eps @ .20. They also say that "Recoveries in customer industries should benefit income in 1997...microchip and communications product inventory gluts may have run their course, and that makers will resume expansion. Order rates at Mentor Graphics have improved, exceeding shipments by the end of the December quarter". Their 1999-2001 Projection on return is a high of $30 (200% gain) and low of $18 (80% gain), Timeliness and Safety are both average (3).

It looks to me like their ratio of current liabilities to current assets is still real good (compared with 9/30). I still think we'll see $18 by July. The main turnaround should be in the second quarter. That's good enough for me!

Judy
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