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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: mogwai8myball who wrote (91030)	3/31/2000 11:22:00 AM
From: Jenna	Respond to of 120523

EMLX vs TERN. I like EMLX better. If TERN gets as low as 188 that pretty serious. I would probably cover today anyhow.. You must remember TERN is looking for its first positive quarter, both the reporting quarter and the quarter they are in now... both quarters are looking at over 125% estimated EPS growth. TERN is an earnings play and was on the watch list for technical reasons last week. It looks like the "anticipatory upswing' kicked in early and TERN is giving it back. I think to short TERN more than 24-48 hours is dangerous. Its the same story with EMLX and I understand that TERN can conceivably have the same 3 or 4 day correction as EMLX but its a lot of money to bet on the downside of very strong growth stocks. TERN is more of a question mark than EMLX.. EMLX has high earnings its income is esimated to grow to 1,633% and sales at 109% while TERN's is not even available because they are still negative. TERN's sales are estimated to grow 206%. Neither company has any debt. TERN might be fully valued and its EPS growth probably factored into the stock which is why it dropped. You can probably say the same for EMLX but analysts see 149 as fully priced for EMLX. But in the final analysis EMLX is already earnings money and TERN MIGHT earn money. I'd chose EMLX rather than TERN as a longer term hold. And I'm already watching EMLX for possible re-entry as its given back quite a lot already. IMHO the upside in EMLX for the next few trading sessions is greater. That is just an opinion based on personal analysis, not a prognostication. Earnings Estimate. Emulex average 6/2000 estimate: $0.66 Emulex average 6/2001 estimate: $0.89