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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (11967)	11/7/1999 10:48:00 PM
From: TRIIBoy	Read Replies (1) \| Respond to of 18998

I have owned this stock for over a year but have not brought it up on this thread due to the liquidity problems. This stock was $25 to $30 last year before the correction and then collapsed when management split the stock into two classes of stock. Reducing liquidity and forcing institutions to run for the hills. Growth before the Lucent acquisition was 25 to 30% for two years. Now the aquisition which was made by purchase accounting and bought below book value is causing business to grow even more rapidly because Lucent is now a customer. But also product sales for cable modems, ADSL and other telecom products is driving growth not acquisitions. This is a tech stock that trades at 10 times trailing earnings? Can you find another tech stock that is growing earnings at 40% and will grow earnings at 30% next year, that has such a valuation? What about the cash flow of this company? Look at the operating margins of 19%, ROE 20%. This stock is incredibly undervalued. I find your statements shocking once you dig in. Look at price to sales, price to book, margins, return measures. The average p/e of this market is 26 forward. the average tech stock is something north of 30. And here we have a company doing better than average, selling a below normal valuation. The reason is liquidity. After the split that changes.