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Technology Stocks : Praegitzer Industries (PGTZ) -- Ignore unavailable to you. Want to Upgrade?

To: paul kneitz who wrote (176)	7/23/1998 11:20:00 PM
From: Rumblinrob	Respond to of 196

Paul, That would be a nice gain from the current stock level.

To: paul kneitz who wrote (176)	7/24/1998 12:27:00 PM
From: rich evans	Respond to of 196

I read a transcript of the CC. Price pressures are tough and average 6-10% decline. You can see it in the gross margins which are down 5% to 15.They were going to keep SGA constant in dollars but it stepped up because of the Huntsville acquisition and Malaysian consolidation. Cap utilization is only at 70% similar to HDCO. Huntsville at 3.2 mll for quartetr and malaysia only 900,00. Basically it is a "tough enviroment" out there especially in the uner 7 layer count which Chinese beginning to dominate. Dallas average is 8 layers. PGTZ though is somewhat insulated because of the 20 design centers it has which give service revenue and hopefully to Q/T and volume business. Trying to get price concessions from Suppliers such as Park and Allied Signal.One way they are doing this is to get Park to do more of the prep work without increase in price. I wonder if Creditman sees this?CPQ business dropped dramatically. They are comfortable next quarter with 3 cents a share earnings estimates with good shot at exceeding. Basically their revs held up better then others in the industry but still only breakeven based on Price Levels and high SGA. They have good customer relationships and are winning business from the smaller shops. Looks like we will have to wait awhile on this stock/company. They indicated they need to get business up to 85-90 percent cap utilization to get their margins back to the 20 percent norm and be on their way. But they are continuing to plan and spend for such an event with 8.4 mill spent this quarter and 41 for the year against only 8.7 depreciation/amortization for the year. Hope these investments pay off. Hp problems I think our hurting the PCB companies. Hp sold a lot of pheriperals in Asia and I would guess business is way down. Rich