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Technology Stocks : Glenayre Technologies(GEMS)- a pure cellular PCS play? -- Ignore unavailable to you. Want to Upgrade?


To: Machaon who wrote (2200)10/23/1997 1:12:00 AM
From: Skeeter Bug  Read Replies (1) | Respond to of 3431
 
bob, imho, the majority of your issues are priced into gems. the avg pe is 20 across all companies. no way gems is a below avg company.

puts might work, but not yet, imho. wait for the right price. maybe $20 or a little higher.

mu and gtw provide much, much better put opportunities, imho.



To: Machaon who wrote (2200)10/23/1997 2:44:00 AM
From: 8bits  Read Replies (2) | Respond to of 3431
 
Robert,
>>- 9% earnings growth from last year.

I counted a 22% revenue increase from last year's quarter and 14% for the 9 month period. Did I overlook something?

>>- Basically flat revenues compared to 96JUN and 96DEC qtrs.

Perhaps this is seasonal, also consider that MOT announced it's problems with the Asian paging market, one could assume that this has affected GEMS this quarter. At least they made their numbers.

- Flat earnings growth sequentially

The earnings growth was 20% before taxes, wonder why they were tagged so heavily?

Also a sign that they are building for the future is R & D expenditures were up 39%, SG&A expenses up 25%, I see these increases as a positive sign meshing with the companies stated goals of long term expansion in overseas markets.

>>- $3 million+ in interest income. This is about 14% of Pre-Tax Income.
.... Perhaps not a big deal to some, but I like to factor out Interest Income. So, without Interest
Income, GEMS is heading for earnings of about $.85 for the year, pre merger. At $16 per share,
GEMS sell for about 19 times, or higher, 1997 forecasted earnings.

In a more rational market I think this would be a consideration but in today's market this and outright creative accounting tricks with tech stocks tend to be ignored in today's market. The nonsense that USRX and COMS pulled should have creamed COMS.

>>- Company is buying two other companies. Usually Wall Street is wary until positive impact is shown.

I tend to agree with you on this.

I think the announcement that will most negatively affect the stock near term is their book to bill dropping below one.

Long term I think they are cheap (compared to the rest of the market)
and are following they're blueprint for long term success. Short term I don't know. The way the stock moves around compared to the option premiums you could make money in either direction. Good Luck.

Nick



To: Machaon who wrote (2200)10/23/1997 5:59:00 AM
From: Linda Kaplan  Respond to of 3431
 
Headline: Clearnet Selects Glenayre's MVP Enhanced Services Platform for its
Canadian PCS Network

======================================================================
Charlotte, N.C., Oct. 22 /PRNewswire/ -- The Integrated Network Group of
Glenayre Technologies Inc. (NASDAQ:GEMS) today announced it has signed a
contract valued at over $2 million U.S. to provide Glenayre's MVP(R) modular
voice processing system to Clearnet PCS Inc. for Clearnet's national personal
communications services (PCS) network.
PCS, a fully digital wireless service, works like cellular phone service,
but offers advantages such as increased security, privacy, new digital
services, and better audio quality. Under the agreement, Glenayre's MVP system
will be integrated into Clearnet's Signaling System Seven (SS7) network to
provide voice messaging and enhanced services technology throughout major
Canadian PCS markets, including Toronto, Montreal, and Vancouver.
By using the MVP platform, Clearnet will have the capability to offer its
subscribers dynamic voice messaging services to complement Clearnet's PCS
service. Some of the applications available from the MVP platform include
voice and fax messaging, message waiting notification, outbound calling, and
CONSTANT TOUCH(R), a personal number service. CONSTANT TOUCH enables
subscribers to combine all personal and business telephone numbers -- office,
pager, cellular, home, and fax -- into a single number that will reach them
anywhere.
Short message service, another feature offered by the MVP platform, allows
text messages such as "call office" or "call school" to be displayed. The
handset will also notify subscribers of the number and types of messages they
have in their voice mailbox.
"Clearnet believes the proven performance of Glenayre's MVP platform,
along with the multiple applications it offers, will enable us to provide the
exciting voice messaging services our clients are looking for," said Eros
Spadotto, Clearnet's vice president of engineering. "Additionally, we were
impressed with the SS7 compatibility of the MVP platform and with Glenayre's
ability to quickly and efficiently design a custom user interface for our
voice mail services."
"Clearnet has been a long term Glenayre MVP customer for Clearnet's
iDEN-based Mike network. We look forward to continuing to provide the same
level of excellent service to Clearnet with their PCS network," said Dan Case,
president and general manager of Glenayre's Integrated Network Group.
Clearnet (TSE, ME: NET.A; Nasdaq: CLNTF), based in Pickering, Ontario, is
a leading Canadian wireless communications company that operates three
separate wireless networks: digital PCS nationally, the digital Mike network
in Ontario and Quebec, and analogue dispatch communication services across
Canada. Founded in 1984 and a public company since 1994, Clearnet is an
independent Canadian controlled and managed company that has amassed more
mobile wireless spectrum than any other company in Canada. For more
information on Clearnet, please visit the company's Web site at:
clearnet.com.
Glenayre Technologies (Nasdaq: GEMS) is a worldwide provider of
telecommunications infrastructure products and systems serving the paging,
cellular, PCS, telco, voice processing, and point-to-point wireless service
provider markets. Glenayre's net sales exceed $390 million in 1996 and the
company employs approximately 2,100 people worldwide.

Mike is a trademark of Clearnet Communications Inc. licensed to Clearnet
Inc. MVP is a registered trademark of Glenayre Electronics Inc.
CONSTANT TOUCH is a trademark and registered service mark of Glenayre
Electronics Inc.

SOURCE Glenayre Technologies, Inc.
-0- 10/22/97
/CONTACT: Pam Rentz of Glenayre Technologies, 770-283-2410; or Mark
Langton of Clearnet, 905-837-3454/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 111723/
/website: glenayre.com./