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

To: DD™ who wrote (353)	3/23/1998 11:02:00 AM
From: Capitalizer	Read Replies (1) \| Respond to of 765

DD, volume was fairly flat then about 10K shares went through in a couple of minutes knocking the price out of wack. I don't have access to actual trades (just happened to be checking a couple minutes apart and saw the difference), so I don't know if it was a block or not. Anticipating strong earnings with a bright future. Good Luck

To: DD™ who wrote (353)	3/23/1998 11:14:00 AM
From: Rob S.	Respond to of 765

It sort of looks like someone is trying to drive down the price; a series of orders of 100 shares to the downside. The overall volume is very low. I think this is a "normal" pull back maybe heightened by some concern about the health of the market due to oil prices. I think it will bottom around here, maybe trend sideways for a few days and then pull up to establish a new high.

To: DD™ who wrote (353)	3/23/1998 11:22:00 AM
From: Scott H. Davis	Respond to of 765

Actually, I would go back a little further. The current run started from 17 about 2 weeks ago. Considering the 50% retrenchment rule of thumb, it's not surprising - Look at DAOU recently, fell from 24 to 16, big move back to 21, now back to 18+ nearly 50% for each swing. I expect we'll see EQNX back in the 21+ level next week. A viable level going into the next earnings report. EQNX is trading near the top of it's PE range. But after next qtr, we'll be back closer to norms, allowing more price growth within it's range. Assuming a report of .34 and a price of 23 (reasonable targets) pre-report a price of 23 yields a PE of 21.29 based on 12 month trailing EPS (1.08). Replace .19 with .34 and we end up with a PE of 18.70, which puts EQNX back in the very good PEG territory. Projecting further, assuming a 2nd qtr of .38 and a price of 25 after the report, replacing .23 with .38, yields a PE of 18.11. Given EQNX EPS growth history, this seams to be a reasonable scenario, and one that would allow for continued appreciation beyond. Not incredible profit, but with the very sound balance sheet, good cost controls, product development tuned to where the market is heading and good niches, and marketing alliances providing an excellent foundation, I think the risk/reward ration with EQNX is still excellent. Not too bad for a company that has already more than doubled in the past year. IMSCO, Scott