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

To: Christopher Brainard who wrote (1294)	8/11/2004 9:06:57 AM
From: robert b furman	Read Replies (1) \| Respond to of 1540

Hi Chris, Their margin was low as they shipped a big project to Erricsson at a lower margin. Heck whatever it takes to get communication going. The main point here is they are staying within their model to profitability AND Communications is coming back while avionics is getting nice government support-keep watching Lockheed Martin and Boeing both have had huge military contracts awarded just this month.Military is always high margin. The laggard is commercial.AMAT,Delta and Klac are the big customer and they all have said flat sales +or - 5%. I think SBSE can growthe communications part and hold their model - while being substantially rightsized - they'll bring home A LOT OF MONEY. This is the point being missed when everyone poo poos the flat to up guidance - At those levels they're making BIG money that will after the fact be recognised and then you'll be paying 20 something for these great balance sheets that are accumulating cash at a very high rate. Read that to be acquisistions of high tech companies that just don't have the financial strength to go it alone. Look at what L3 has done with that acquisition strategy. Give the healthy firms like SBSE a couple of years and they too will be much bigger buying their growth. Note it looks like their acquisition of the Canadian FPGA is already being accredive. I'm a buyer this A.M. and thinking the next support level is 9.89 unless we get a bounce here? Really don't know - but darn syre watching.GG Have a great morning. Bob