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Technology Stocks : Etec Systems moving up -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (1001)	6/21/1998 12:58:00 AM
From: Carl R.	Read Replies (2) \| Respond to of 1279

Come now Ian, if I came to you and described UTEK as a company that has steadily declining sales (down 36% in the last 6 quarters), steadily declining profits and profit margins (down 95% in the same period), is in a market that is projected to continue to decline (steppers), how would you value them? Let's do a few comparisons: ETEC UTEK Sales chg last 6 quarters: +30% -36% Profit chg last 6 quarters: +40% -95% Stock price chg last 6 qtrs: -18% -20% PE - Trailing 4 quarters 16.4 31.2 PE - Projected 1998 14.5 103.3 PE - Projected 1999 10.5 25.2 PSR 2.4 3.8 Yep, I'd have to call UTEK a market darling. Almost any other company that showed the kind of dismal performance that UTEK has shown over the last year and a half would have seen the stock price driven down much more than UTEK has been driven down. If I recall, they have quite a cash hoard, but without that cash it wouldn't have been surprising to see their stock down at say $7-8, or 10 times projected 1999 earnings. The disparity in the numbers above indicates to me that Wall Street thinks that UTEK will take substantial market share away from ETEC, because it sure isn't based on UTEK's stepper business. Carl