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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (61025)	9/13/1999 6:27:00 PM
From: kendall harmon	Read Replies (1) \| Respond to of 120523

BRKT--more from september ind investor magazine Twofer by Alice Shane Brooktrout Technology (Nasdaq: BRKT) may never be a household name, but it is a leading behind-the-scenes Internet player. The Needham, Mass., company supplies corporate clients with the hardware and software, including network interface cards and add-on computer boards for high-end fax, voice, and data transfer, to connect to their customers and each other. And its soon-to-be-spun-off subsidiary, Interspeed, is soaking up market share in DSL (digital subscriber line) modems, a hot new link to the Web. Brooktrout will still own 64% of the spin-off, and FAC/Equities analyst Herbert L. Tinger expects the parent's stock to track Interspeed's. Brooktrout should be able to grow earnings at a rate of 15%, says analyst Michael Latimore of John G. Kinnard & Co. "Based on an estimate of $1.05 per share and a projected $166 million in revenue in 2000 excluding Interspeed, the underlying business could claim $15 a share," he says. "They have done an excellent job of educating the market on the advantages of their products." Latimore expects shares to climb to $25 this year, from a recent $19, spurred in part by sales growth of 39.5% and earnings-per-share growth of 27.5%. But Tinger has a more skeptical view, citing declining revenues at two competitors, Dialogic and Natural MicroSystems. He predicts continuing industry softness that first became apparent in the fourth quarter of 1998, and says the trend could last through to the year 2000. But both analysts agree on one thing: Interspeed's initial public offering is likely to add several dollars to Brooktrout shares by the end of the year. Source: messages.yahoo.com