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Technology Stocks : MTIC - Is this the next EMC? -- Ignore unavailable to you. Want to Upgrade?

To: Mark T. Heath who wrote (1177)	1/27/1998 10:19:00 AM
From: Duncan	Read Replies (1) \| Respond to of 3748

First, let me say that I'm delighted with the Company's recent EPS achievement and it's outstanding revenue / earnings growth. However, that may not the whole story...and rarely is. Yes, the EPS report appears to be great, but that ISN'T why stocks go up or down with these announcements. They pop because the institutional/analyst community is pleased with historical performance...AND more importantly, the institutional/analyst remains excited about the Company's future growth / margin opportunities. Until the conference call addresses these forward looking issues, the strong EPS announcement only provides a platform for the stock to hold it's base...as it is now. From a purely cursory glance at the announcement, one may ask if MTIC is stuffing the channel? <Speculation> Both trade receivables and inventories are way up...and without the prior period information in front me...let me speculate that they are up at a growth rate in excess of revenue or earnings growth...which means they are offering longer time periods to recover sales...or they are starting to have some difficulty moving product...or they are offering creative payment terms...or they are having difficulty with collections. As always, the finer points of all press releases and SEC reports are hidden in one or two sentences. I'd also be curious whether the Company has increased, maintained or decreased their reserves againsts receivables...on a percentage basis that is...as it sheds light on the aggressive or conservative posture management has taken in order to hit $0.17 for the quarter. These are the issues...and hopefully the analysts will address them in the conference call...but don't be surprised if they don't because CFO's and CEO's these day often speak with key analysts in private calls after the group conference call. By the way, if someone has the prior period trade receivables and inventory numbers at their fingertips, please post for evaluation and discussion. Hopefully I'm making something out of nothing...at least in the short term...because I have a great deal of confidence in MTIC in the long term. Duncan