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Technology Stocks : TLAB info? -- Ignore unavailable to you. Want to Upgrade?

To: Clam Clam who wrote (1951)	1/27/1998 1:47:00 AM
From: Capitalist	Respond to of 7342

>The blue-chip company is LU but they only grew revenues 10% Y/Y last quarter and have a 27x multiple. TLAB grows 30%+ and curently has a 26x multiple. Go figure.< That is a very misleading number. Revenues actually grew much more than 10 percent year-over-year. Remember that LU shed its Consumer Communications Products into another company earlier in the year. The Consumer Communications Product division consisted of wired and wireless phones, answering machines, etc. This segment that LU shedded (and may I add was a very good move) was a high-revenue producer, but a very low-profit margin business. That explains the large increase in profit margins that LU underwent last quarter. Please remember that the 10% percent revenue growth number is not quite accurate. Regards, Serry Habash