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Technology Stocks : BOSA(Boston Acoustics) -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (13)	5/18/1998 1:44:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 34

Earnings of .82 on 101% increase in sales were announced today. That's 20c above street estimates of .62. The stock is up on a down day but is still not on the radar screens of most analysts or institutions. The CEO said that they expect continued strong sales through fiscal '99, including sales to Gateway 2000. Not word yet on whether that means that they have a new long-term contract with Gateway to supply the speaker systems or they are just expressing confidence that the relationship will continue. I belive that if the uncertainty of the long-term supply relationship with Gateway is addressed that the stock will reflect a higher P/E. The current P/E adjusted for the new earnings is around 13. I think it is reasonable that Boston should obtain a P/E of around 20 if this uncertainty is resolved. That would put the short-term price target at 52. If growth continues at half the current rate, the stock could be at 80 before the end of the year (not considering stock splits). Speculative due to the uncertainty of the Gateway relationship. However, BOSA has spent heavily on bolstering their sales force to go after increased business elsewhere. That too should pay dividends in the coming months.