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Technology Stocks : PRI Automation (PRIA) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Getman who wrote (435)	6/4/1998 3:43:00 AM
From: Q.	Read Replies (1) \| Respond to of 1214

<<PRIA's book value is near $14>> you must have made a booboo ... book value is $6.42. To compute this: shareholders equity is $126 M, shares outstanding is 19.7 M, and dividing the two yields a book value of $6.42 per share. With a stock price of 16 1/2, that puts the p/b at 2.6 Some other semi equips are trading at significantly lower multiples of book than PRIA. ASYT to name one, at about 1.6. If PRIA slumped to that multiple, it would hit $10, which is the same as the figure cited by Ian for 1 X sales. I certainly hope that doesn't happen, but I think that's the chicken-little scenario.

To: Paul Getman who wrote (435)	6/4/1998 1:02:00 PM
From: HB	Read Replies (1) \| Respond to of 1214

Agree Intel and PRIA intertwined; more Intel bad news may give us an even better buying opportunity... just remember Intel is a tough cookie, and in a few years may be leading the way in fast cheap 64-bit machines with all kinds of fast internet/DSP/video/ audio capabilities, and blowing competitors out of the water... especially if they can get MSFT to put out a decent OS to run on it... and PRIA will be supplying them. Or whoever else is giving them a run for their money. In the 10Q I see, as of Mar. 29, 19.551 million shares outstanding and 126.3 million dollars in stockholders equity, which computes to about $6.46 book value vs. the $14 you stated. I've screwed up this calculation before on other stocks, but I have the 10q online now and it looks right. Can someone verify? (OK, I see that's dealt with in some previous posts, if not quite resolved) Over the last few years, I have not seen PRIA trade close to book even at sector-wide lows. I'm thinking $10 for an extreme sector bottom, at about 1x sales; book would take a market-wide crash (not at all impossible), to say 10-15x earnings, with earnings below what they are at this cyclical peak (and without the ability to hide compensation expense in options grants). Actually, in that case I could even believe PRIA could go well below book, if a worldwide recession ensued. I will probably buy before $10! Cheers, HB