Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : INVX Innovex Comdex Winner !! -- Ignore unavailable to you. Want to Upgrade?

To: Mark Oliver who wrote (2544)	6/19/1998 2:56:00 PM
From: Tom Simpson	Respond to of 3029

>getting too cheap to pass up?< That is a good question Mark, it depends on your measure I think. At 1.5 PSR and PB of 2 for a business normally running gross margins in the upper 30's it is attractive enough at this level. The other thing is that they're still increasing book value every quarter here when all around them others are shrinking that. Looking at the long term chart I could make a case for expecting a bottom closer to 10 so I'm still holding off, but checking every day. In any case, I look to pick it up a little bit at a time over some extended period as a long term holding. That is how I compensate for being a lousy trader. I think it is going to take a while for them to develop other markets besides just DD head connections where their chances for high growth now look to be pretty limited. Looking forward, I wouldn't necessarily see this as a "storage" stock; at least I hope not. Best....Tom

To: Mark Oliver who wrote (2544)	6/20/1998 4:43:00 AM
From: Tom Simpson	Respond to of 3029

Mark, Another thing worth noticing about this company looking at the risk side. When you look at their assets you'll see that plant property and equipment makes up about 30% of the total. Compare that with ReadRite for example at 66% or so. APM is down to 50%. Hutch runs around 50%. Its actually a lot more equipment than property, and its vulnerable to quick obsolescence. This is the squishy part of tech balance sheets and the root source of a lot of "one time charges" (repeated too often). The point is that INVX book value is actually pretty non-squishy and substantive as these things go. There is good value here. Best ..... Tom