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Technology Stocks : SmartFlex Systems (SFLX) - Blitzkrieg or Sitzkrieg? -- Ignore unavailable to you. Want to Upgrade?

To: Bernard I. Gentile who wrote (672)	6/19/1998 6:03:00 AM
From: Kent Sarikaya	Respond to of 848

Asia is hitting all of these companies and many bad warnings recently from similar companies about this quarter and somewhat next quarter. It hurts the yearly earnings also. Investors and managers don't seem to believe in letting money sit for 3 to 6 months anymore or getting in early. They dump stocks and move elsewhere for the mean time. They figure they have time to get back in when the news gets better. I wish I could do the same, but I don't know where else to go. I'm conservative and love low PE's, low price to sales ratio and high expected growth the next 5 years. I've been sitting in flat companies now for 3 years, I can wait a bit more. All of these good companies will reward well once we get the turn around.

To: Bernard I. Gentile who wrote (672)	6/19/1998 9:44:00 AM
From: Joe Dancy	Read Replies (1) \| Respond to of 848

The HDD sector has seen some comments indicating a turn around - or at least a leveling off - and SFLX has a number of these as their major customers. Will they slump further? No one knows - but storage demands continue to increase, and new technology will push HDD design and products. Then again, bad short term news from one SFLX customer was released this morning sjmercury.com Data storage needs continue to soar " enhancements in hard disk drive technology will push tape storage increasingly out of the picture"; "The tape library market will be only a one-tenth of its current size. " techweb.com The uncertainty in Asia adds risk here - but hey where in America can you go out and buy a company with a great future in a growing industry with no debt and pay less than book value? Not on main street, and not on Wall Street either if you follow large cap stocks. But here, in the hinderlands of microcap stocks, we can buy a business with more potential than 95% of the companies in America, and pay less than book value. Is this a great country or what? Yeah, I'm depressed at the current price Bernard, as well as some of my other tech favorites - but like Kent says the institutional managers run in and out of this stuff - which leave great opportunities for us value based investors - www3.techstocks.com I am looking at SFLX very closely, and may buy more here and possibly "replace" my higher priced shares in a month or so to average down while recognizing a tax loss that I can use to offset gains elsewhere. If you buy when things are going well with a company you might make money as the shares appreciate, but when you buy when no-one else wants to touch the place you can do very well provided the joint stays in business. I think SFLX will stay in business regardless of how bad the next few quarters are. If I buy I'll let you and Kent know, since the price will probably fall to $3 after the purchase :). On the other hand, if I buy much more of this stuff they will have to put me on the Board of Directors. Joe