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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Dave who wrote (26513)3/9/1999 9:37:00 AM
From: Jenna  Read Replies (1) of 120523
 
CMVT, A "Market Gem" back on the move.. CMVT chart is improving and stock was under distribution Relative strength is now bullish and the stock looks like it is reversing nicely.

CMVT' wireless sales have grown 50% to more than two thirds of its total business over the past few years.. This is partly because most cellular companies offer free voice mailboxes in their sale packages. Most wire based operators charge for mailbox access. Every time someone signs up for Spring that means another 10 or 20 bucks for CMVT. One of the company's newest contributions to the wireless arena is technology to support prepaid wireless services, which it began offering in October.

These products have been selected by 10 wireless operators worldwide so far. They let Comverse customers broaden their subscriber base to include high school and college students, as well as people with poor or limited credit.

Comverse introduced One touch Call Return software in mid '98. Used mainly by cellular phone operators, One Touch lets users reply to a message at the press of a button, using a stored phone number that's automatically.

Another new product is technology for unified phone mailboxes, which Comverse released about nine months ago. This lets phone users check their voice, fax and e-mail meassages from anywhere in the world with one call. Fax and e-mail transmissions are translated into voice text as part of this phone service.

Deutsche Telekom AG, the world's third largest phone operator, signed up for this technology in April.

About two thirds of Comverse's sales should be made abroad this year. Before the company bought Boston Techology in a $700 million stock swap in January, almost all of its sales came from outside the U.s. mainly from europe.

1999 estimates are for CMVT to earn an increase of 43% and 20% in 2000. Sales growth for 1997-1998 increased by 81% and for just the 1998 it increased 133%. The stock has absolutely no debt. It is the #1 ranked stock in the Telecommunications Equipment sector with an EPS of 97 its Relative strength moved "DOWN" from 97 in december to 93 today. It's industry group relative strength is now "A" and its Sales+Profit margins+ROE is also ranked "A" Relative strength has moved down providing for a buying opportunity. #2 is LU, #3 is XLSW, #4 PLT, #5 MELI and #6 is TLAB
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