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

To: Jeff Jordan who wrote (1525)	6/2/1998 2:01:00 PM
From: Adam Nash	Read Replies (1) \| Respond to of 2020

At this moment SMOD has P/E of 10.71 w/ last Q2 .30 $30 would be p/e 25 The industry is growing and new products will improve earnings. Jeff This ignores the next 12-months earnings, which is more important. You need to generally price stocks on the future value flow, not past. With .19 and .26 coming down the pipe, it looks like SMOD will have to work hard to earn $1.00 in the next 12-months. That does not compare favorably with the past 12-months. In fact, with less than 0 growth, the facile "PEG" math doesn't really apply. However, 1998 will be talked about in the future as a really tough year for semi's, and I have no qualms about holding SMOD. I am fairly sure that this stock will double in the next 3 years. That's a fantastic return compared to historical norms. I will revisit SMOD quarterly, possibly to add more to the position if it is better than other opportunities (I have been looking at MAVK recently). I love high-flyers that crash - often pretty good values. Witness Pixar (PIXR)...