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

To: Robert H. who wrote (1515)	5/30/1998 6:15:00 PM
From: P.M.Freedman	Read Replies (1) \| Respond to of 2020

SMOD has dropped year-to-date 40.5%. P/E based last 4 quarters was only 11.2 and P/S was 0.8. The book value is $5.27. This quarter's earning estimates was set at $0.19 and next quarter at$0.26. The average estimate for 1999 is $1.32. It means that you buy this stock here and will carry a P/E as low as 10.3!!! All of its competitors now carry a P/E ratio over 20, some of them over 90 or even losing money. Don't expect other investors would sell you their shares at lower prices unless the earnings in this quarter is going to below $0.10 or negative. Who else think the earnings won't reach $0.19? This number was out of the mouth of the CEO of SMOD, not form the analysts.