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Technology Stocks : APSG - Applied Signal -- Ignore unavailable to you. Want to Upgrade?

To: hoopsville who wrote (798)	5/15/1998 11:58:00 AM
From: Christopher Brainard	Respond to of 884

The conference call went very well in my opinion. Folks on the call expressed the same concern about new order levels, inventory levels and weak stock performance that have concerned all of us. Regarding inventory levels: Company builds inventory in anticipation of new government business. Higher inventory means the company is expecting a good future flow of new orders. Regarding order levels: Company books orders in uneven amounts quarter to quarter. 3rd and 4th quarters are usually the strongest booking quarters. Sometimes 50% of the annual bookings can come in the 4th quarter. Company seemed confident that total 1998 orders will equal or exceed the $96 million in orders booked last year. (I think I got this point correct, please correct if not accurate) Regarding stock performance: Although they did not come right out and say it, they were pretty unhappy and surprised by the markets reaction to companies performance. Left me with the impression that the market will be proved very wrong in the long term. Basically any concerns I had that the company is having any problems were put to rest. If I had not added to my position at $15 I would have added more shares at current prices. I got the feeling that some of the analysts on the call might upgrade their opinion on the stock based on fine company fundamentals and over reacted stock price. I guess only time will tell. Good luck to all APSG believers. Chris ....