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Technology Stocks : Emulex, What Prospects? -- Ignore unavailable to you. Want to Upgrade?

To: iceburg who wrote (101)	2/1/1998 11:58:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 788

Steve, You are right. At $12, my latest stats would give a trailing PE of about 25. For me it's a toss up at this point between buying EMLX or buying more MRVC or TLAB. Both of those companies have a more well defined income stream, but considerably higher PEs. The same thing is true for the other FC adapter companies. The other great thing about Emulex is that there has been minimal dilution over the past 8 years - from 5.49M in 1989 to 6.1M in 1997. George D.

To: iceburg who wrote (101)	2/2/1998 2:11:00 PM
From: Douglas Nordgren	Read Replies (1) \| Respond to of 788

<<...$12 a very reasonable price to pay for EMLX.>> The important point of all the PR about "partnering" is that EMLX has clearly demonstrated FC adapter interoperability with all the major FC component vendors, a critical major selling point which will translate into further contracts down the road. The FC/AL hub market is crowded, but it is assumed EMLX will get their piece of the pie. These projections benefit leading revenue/PE. I would look for positive indicators to see if anyone else agrees that $12 is indeed the right price to buy. JMHO. Sorry, have gotten much more conservative (and patient) with my "mad money" nowadays, more averse to arriving too early to the party.<g> Douglas