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Technology Stocks : ATI Technologies in 1997 (T.ATY)

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To: Marc who wrote (3136)4/15/1999 6:48:00 PM
From: SBHX  Read Replies (1) of 5927
 
A stock like ATY is a long term hold. From their recent moves (chromatics acquisition, GI DTV box), its very clear what the company is trying to do.

How well has ATY done in the last 2 yrs?
tscn.com

When compared against NASD and the leaders of the industry, ATY hasn't done too badly. Even the darling of mutual funds : CSCO has not done as well.

But look at the long term.

The principals of this company are already wealthy individuals, at this stage, they could have walked away, but they chose to make a big risky investment (chromatic) --- this indicates a willingness to gamble and go after MUCH bigger markets. If the gamble fails, they gotake a financial hit and could have another try, if it succeeds, then this company could be THE biggest electronics company in canada (bigger even than NT?). There really isn't that big of a downside.

Clearly not a stock for day-traders.

...ATI PE is 1/3 of it's growth rate...what does Wall street is expecting from ATI for it to deserve a PE close to it's growth rate

JMHO
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