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Technology Stocks : Equinox Systems (EQNX) -- Ignore unavailable to you. Want to Upgrade?

To: Gihan Karunaratne who wrote (261)	1/28/1998 12:26:00 PM
From: Scott H. Davis	Respond to of 765

Gihan, sales growth is less than EPS growth rate due to cost controls, improving margins, and share buy back. You may need to read back on thread, but I believe they are about 60% thru with a 1 mil share buyback, meaning 400,000 shares to go. I see it as a positive. I expect the positive synargy to continue. Only negative with buy back is the float's getting pretty small, meaning likely increased volitility. If the price goes up to near 25, I'd recommend a 2 for 1 split to increase shares w/out dilution. FYI Scott

To: Gihan Karunaratne who wrote (261)	1/28/1998 3:53:00 PM
From: Quad Sevens	Respond to of 765

<<< Noticed that the number of shares outstanding for Q4 is down by about 10%. This would account for Q4 EPS coming $0.02 ahead of consensus $0.33. Should I be concerned? >>> First, I bet the consensus was for basic earnings and not diluted earnings. If true, EQNX beat estimates by 6 cents. Second, the analysts knew about the share buyback because the company has been publicizing it (as they should). Comment on the revenues: Year over year they are up only 14.5%; last quarter they are up 35%!! That's impressive. The balance sheet is pristine--no long term debt. Look at the cash: 4.32/sh. The stock is not a classical value play with a trailing PE of about 19 and price to sales ratio of 2.6. But good businesses rarely are. Wade