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Technology Stocks : SBS Technologies (SBSE) - Undiscovered gem -- Ignore unavailable to you. Want to Upgrade?

To: Clay Takaya who wrote (760)	8/9/1999 11:48:00 AM
From: Christopher Brainard	Read Replies (1) \| Respond to of 1540

Clay, Thanks for your thoughts. Yes I am going to be on the CC. Have not missed one since they started. SBSE is currently 40% of my portfolio. Needless to say I really like the company. But the position is a little too overweighted currently. Okay, it is way too overweighted. But almost 40% of the position has been recently built as a trading block. Purchased this position at $18, $21.625 and $23.50. Assuming a good report and the street starts looking at FY2000 growth of 20%+ instead of the 13% growth of the FY1999 building year, minimum fair value for the stock would be $1.85 x 15 = $27.75. With forecasted growth of 17% going forward, a 12 month target of $2.25 x 17 = $38.25 seems pretty reasonable. But you and I both know that this stock often becomes available at screaming bargain levels. I want to be ready for the next fire sale. Thus my trading position will be sold if we hit my short term fair value level of $27-$28. Are you surprised by the very light trading of today? Seems to be no pre-earnings buying. Too many folks burned by sell on the news activity of some of the larger tech stocks? Looks like the pre-earnings buying took place a couple of days ago when the stock popped up from the $23.50 level. Keep your fingers crossed! Chris ...