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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?

To: Scott H. Davis who wrote (282)	1/30/1998 1:05:00 PM
From: FARRIS	Respond to of 1720

Hi folks, You all should do a TA of MIDL. I think you will find it very interesting. The breakout just started after weeks of accumulation. Check it out if you get a chance. The fundamentals look to be impressive also.

To: Scott H. Davis who wrote (282)	2/1/1998 1:10:00 PM
From: HeyRainier	Read Replies (2) \| Respond to of 1720

[ PERLF ] Scott and Trackman: Thank you. I stand corrected. I am digging through the balance sheets from the annual reports: The 1997 Annual Report (You will need Adobe Acrobat): perle.com The 1996 Annual Report: perle.com Also, I was wondering if you have a copy of Michale Murphy's book, Every Investor's Guide to High-Tech Stocks & Mutual Funds.There are some interesting valuation methods he presents there, in particular, the price-to-growth flow ratio. A fair P/GF ratio, which includes the R&D expenditures of a company, is from 10x to 14x. If you have a copy, please look at PERLF's P/GF ratio, and tell me if you are getting a P/GF ratio in the vicinity of 2 - 3 that I briefly calculated for Perle (I don't know the currency translation from Canadian Dollars to US Dollars, but I just divided the R&D figure by 1.2--correct me if this number is too small). From the text: "...Anything under 8x starts to get our attention, and under 5x we really get interested. The P/GF ratio can get astonishingly low--e.g., under 2x. That's when we mortgage the ranch!" As I don't have a ranch to mortgage, I can't quite do what he suggests. This is a very interesting company and situation we have here. I will call the company up again for a 3rd conversation. My notes from that and the previous conversations will follow. Regards, Rainier