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Pastimes : From A to Zeev" -- SI Sacks Zeev -- Ignore unavailable to you. Want to Upgrade?

To: Perom Uch who wrote (134)	1/3/1998 9:15:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 708

Perom, the following is just a first cursory look from data gathered on Yahoo only, so it is definitely just a first cut. The best in the bunch seems to be Plexus, based on valuation, but the downside is IMHO, not over. Plexus had a good recent string and the group (JBIL) has acted nicely most of the year. Right now I believe we have witnessed the first shoe dropping (when it dropped almost 10 points recently). I think tha the torrential growth might slow down because large subconntracting programs will move to the rim, and only intitial or smaller runs which have smaller margin will stay here. They are in a business which rely on their ability to stay continuously on their toes. They do not control pricing pressure in their customers market and thus the relatively low valuation. IMGX seems to be going down the drain, I personalyy would not touch them just because the chart looks aweful, unless there was some specific information that a turn around could be expected. I could not find such information. YURI is in my opinion still very expensive (about ten times sales?), which by itself would not worry me too much, but the stock broke down recently and that is a warning signal. As for DGSD, it recently doubled (probably the tail end of the MSFT investment), is there more behind it? It is getting very close to 8 ytime book value and book value could go to zero if they do not start making money soon. It is possible that the alliance with MSFT will revive them, but without knowing what is in the deal, I cannot say. Do you have more detailed information on the MSFT deal? Why has MSFT invested? are there orders from MSFT coming downthe pike? You should know that part of my pessimism is tainted by the fact that I am still thinking that the market will not go much higher before we tank quite a lot. Zeev