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Technology Stocks : GenRad Inc.(GEN) entering the ADSL market!
GEN 25.74+1.1%Nov 7 9:30 AM EST

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To: Andrew G. who wrote (17)3/3/1997 12:06:00 PM
From: Charles Smithers   of 283
 
Mr. G.-

My guess is that the disinterest has to do with valuation. Consensus is $1.25 for this year (I'm $1.40) and 16 times earnings is historically high for a box company. I think the mix of software/hardware in this quarter's numbers will be very important to perhaps changing that valuation. We'll have to see. As well remember NOL's are runjning out.

Talking with the company indicates a healthy level of business. I continue to get a constant stream of order announcements from the company; nothing huge, but they add up. Backlogs are good. And don't forget the car business.

I guess the stock is likely to be flat here until numbers come out in April.

Or until Forbes comes out in a couple weeks.

cfsiii
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