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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Doug R who wrote (40285)	12/9/2001 11:30:48 AM
From: Sergio H	Respond to of 79279

Doug, REAL is a good example of a small cap tech value play. It's selling at cheap valuations; below book value and at par with sales and just above cash per share. REAL provides testing services for the chip makers. This is a risky play as the chip industry may not have bottomed out yet, despite the recent bullishness in the sector. REAL's earnings have suffered along with the industry doldrums. On the plus side, REAL's customer list is well rounded and represented by many industry leaders including Advanced Micro Devices, Alliance Semiconductor, IBM, Intel. The Co. has taken advantage of the industry downturn in successfuly cutting costs, buying back shares, and increased research and development spending. From a fundamental perspective, you can't go wrong with buying value. With value plays, the question is how long will it take for the market to find the value. REAL will do very well if the semiconductors remain in favor or when they return to favor if the current rally fizzles. Sergio