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To: dexx who wrote (3882)2/23/1998 8:28:00 PM
From: Little Engine  Read Replies (1) | Respond to of 27968
 
****OFF TOPIC******

Well, Dexx, for the sake of clarity, I have not purchased any HRVY yet, since I don't have the money free to do so. I would look at both SRSL and HRVY as long-term holds.

As I said, I purchased SRSL last week (Tuesday)... had been looking at it for a while, wish I had bought the previous week. Ameritrade goofed up on new software they were installing, and I wound up paying a good deal more than I thought I would. I'm still comfortably ahead, however, and will be holding it for the long-term anyway. (Recommended it to Markox5 before I bought, but he wasn't interested .)

SRSL designs 3-D stereo technology and licenses it out to computer makers, speaker companies, etc. They don't manufacture anything, which allows SRSL to make huge margins (39 percent net profit, last I checked... better than Microsoft). In addition, they are the leader in their field, with every one of the top 10 computer companies using their products. I checked out several of their competitors, and those companies (AURL, SPAZ, etc.) are all losing money, as far as I can see.

Furthermore, SRSL has about $20 million in the bank, in the form of municipal bonds (about $2.50 per share in cash alone, and they were trading at only about $6.50 a couple weeks ago), and not one cent of debt. Finally, their market is growing due to the emerging markets of digital TV and DVD players.

HRVY also has a high profit margin, and is heavily into licensing (cartoon characters... not sexy, but apparently pretty profitable) and has a lot of cash laying around. In addition, they are getting heavier into making children's videos, which appears to be a successful venture for them, based on their initial success at it last year. The P/E is low, and earnings projections are strong as well. No debt here, either. I don't see much downside to it.

Thanks for asking,
L.E.