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Technology Stocks : RGFX Raster Graphics

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To: Lee Fredrickson who wrote (14)3/13/1997 11:34:00 AM
From: Thomas B. Akin   of 593
 
Hey Lee-

I don't know anything about baseball and some people think I don't know a things about stocks either, but here goes. Raster only makes (at this point) large format printers (excess of 24" in width) and has most recently introduced the PIEZO Print 1000. This new PP1000 is a ink jet wide format printer that sells for about $10,000. At the most recent Robertson conference, RGFX alluded to the expanding product environment and opportunities for future products. Obviously ENCAD sees the same opportunity and is responding. There will be alot of action in the color inkjet wide format market and I think that RGFX will be there. As a matter of Value, RGFX is is trading at 2 times revenue and ENCD is trading at 6X revenues. Both companies are growing at 50% a year plus. On a PE basis, RGFX is trading at 11X PE for 1998 with ENCD trading at 20X. So roughly, ENCD is about twice as expensive as RGFX.

Tom
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