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Technology Stocks : Centennial Technologies (CTN)

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To: kolo55 who wrote (362)2/10/1997 2:27:00 PM
From: aatkinson   of 1959
 
If CTN writes down their inventory by 30%, which they may or may not do depending on the inventory methods used, book value of the Co. will decrease by even less. The mkt value of this Co. is not based on their book value, but rather on their sales and income -- neither of which is effected by reduced-valued inventory. In fact if DRAMs are so cheap now the profit margins of CTN should increase simply due to better gross margins. There's obviously something going on, but I can't believe inventory value is it.
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