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Technology Stocks : DII Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Asymmetric who wrote (1644)	6/5/1998 1:37:00 PM
From: Nevin S.	Read Replies (1) \| Respond to of 1845

That "Yeah whatever" comment is hilarious. On a more serious note, if we can assume that Management's new earnings forecast is close to the mark, ($.23-$.25/shr in the Q2 and Q3), is this stock cheap? Even at a run rate of $.25/shr and no growth they should earn $1.00/shr. At $15.00/shr the PE equates to 15x.

To: Asymmetric who wrote (1644)	6/5/1998 4:53:00 PM
From: Nevin S.	Respond to of 1845

Took a look at last quarter's report again and they show a loss of $32.0 MM after non-recurring charges of $54.0 MM related to Orbit. Their cash position is not exceptionally strong (they ended the Mar. quarter with $63 MM or $2.49/shr) but if they can produce positive cash flow over the next two quarters they should be in good shape. I think they burned about $22 MM in cash during the first quarter but approx. $9.17 MM of this was to buy back stock, so only $12.8 MM net. In a side note, they bought back 372,500 shrs at approx. $21/shr., which shows what management thinks of the price of their stock. I guess the question mark here is whether they will have any more extraordinary items related to Orbit in the future and and whether they will be able to achieve positive operating leverage if business conditions deteriorate further.