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Technology Stocks : INEL - Inteligent Electronics ?

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To: brian chan who wrote (63)1/31/1997 8:29:00 PM
From: Tom Hua   of 234
 
I also think INEL is very undervalued. Let's compare it to Ingram Micro using data from marketguide and today's closing price.

IM INEL

Price 20.75 4.25
Sales/share 91.4 101.9
P/S 0.22 0.04
Book value 3.49 3.05
P/B 5.95 1.39
PE 26.0 NM
Cash 0.39 1.47
P/C 53.2 2.89
debt/equity 0.38 0.52

Ingram Micro has smaller debt/equity and profitable but when you look at the other parameters, INEL is so much cheaper. In fact, I haven't run across any technology company that has such an extremely low price/sales. If the new chief operating officer can follow through with his plan to streamline the company and make it profitable again, that alone could bring INEL back to the low teens. Of course, if INEL is going to distribute XLCT to its shareholders, that's a big plus. Alternatively, selling XLCT and/or some of the INEL divisions will help too. So I see great potential to double your investment here. I also think INEL has hit the bottom, downside risk is minimal.

Regards,

Tom

PS The table above was properly lined up when I typed in the message, but for some reason, it came out misaligned.
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