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Technology Stocks : RF Monolithics (RFMI) -- Ignore unavailable to you. Want to Upgrade?

To: PJM001 who wrote (268)	11/3/1997 12:35:00 AM
From: Mr.Creosote	Respond to of 369

Like Wang I too am bullish on this one long term. I bought in the single digits a few months back on the advice of a friend who uses their products and sold at 24 a few weeks ago. Went back in at 13.75 on Friday but would like to add more shares again at $9 if the shorts who I hope will increase on Monday morning will give me the chance. The news that came after the close on Friday was hardly news since you could have called in and be told of the downgrade by the two analysts DURING market hours. I expect anybody with a position larger than 1,000 shares knew about this before the close and acted on it one way or the other (thus the incredible volume). Note that this is typically their worst quarter and even with the reduced numbers they will still show approx 50% growth from Q1-97. RFMI has been growing at 100% clips and even with this quarter a good valuation would have them at a PE one half of their growth rate this Q or 25. So, at $0.85x25 I am looking at $21.25 per share by the end of 98. On the other hand, the short term technicals look extremely bad as the stock has collapsed from the twenties back into the low teens. The only positive is the climactic volume of 2M shares considering the low float which indicates the bottom may not be far from here. Of course all this needs to be taken in the context of a weak overall market. My advice to those with weak knees is to wait a while and consider buying on strength. As for me I am willing to plow earlier profits back into RFMI at these or lower levels. Very short term traders and "scalpers" as well as intraday operators looking for "haircuts" need to be really good with their stops to make money here. After all, it is only money. John