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Technology Stocks : Smart Modular - diamond in the rough? -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Jordan who wrote (1489)	5/27/1998 9:57:00 PM
From: P.M.Freedman	Read Replies (2) \| Respond to of 2020

The company has positioned themselves very well in this semi-down market (most semiconductor related companies down and the whole markets down in the middle of a full correction). They claimed that they can make $0.19/sh in this quarter and $0.26/sh for next quarter. Next quarter will be $0.07/sh better than this quarter. It's clear that it will be getting better, not worse. To me, SMOD was oversold at least $5 based on the potential earnings. Most of the analysts have adjust their estimates to $0.19/sh and set a hold rating on this stock. Will we see a new downgrade? No, no one will downgrade it at current price level. Will we see a new upgrade? Yes, it's for sure if those analysts know how to calculate values. Why and how could this stock drop to this level? It's simple. It's due to a big negative surprise to everyone, not only you but also the institution holders and the market makers. The $0.19/sh estimated by the company must calculated based on the contracts in hands and reliable promised orders. It should not consider those possible orders from Southeast Asia where most of countries are in financial troubles. There will be two more months to end this quarter. I believe the company can do better if any new orders cut in. Good luck!