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Technology Stocks : SBS Technologies (SBSE) - Undiscovered gem -- Ignore unavailable to you. Want to Upgrade?

To: Clay Takaya who wrote (647)	8/5/1998 9:29:00 PM
From: dstange	Respond to of 1540

Clay, thanks for reporting the results of the conference call. This kind of reporting is what really makes this site useful to all of us. I am encouraged by the earnings results and glad to see no warnings about Asia movng forward. Good luck to all.

To: Clay Takaya who wrote (647)	8/6/1998 11:08:00 AM
From: Christopher Brainard	Read Replies (1) \| Respond to of 1540

Clay, Great post and outline of the comments made on the conference call. The comments regarding the big jump in SG&A and offsetting drop in tax rate was an interesting dance. Basically if you want to drop the stock you could point to either item as a reason to be little the reported $0.47 earnings. As you pointed out, the real story here is SBS the company. Chris Amenson pointed out a couple of times the diversified nature of the industries and companies that make up the SBS customer base. They have focused their US marketing efforts and expanded into Europe. If investors want to focus on two offsetting items on the 4th quarter income statement, then they are missing the point. But since the company is already selling at around half its growth rate, it seems pretty clear many investors are already missing the point. Was Chris Amenson concerned the market would react badly to the $0.02 - $0.03 kick to 4th quarter EPS due to the lower tax rate? "The market is not rewarding the stock for the $0.43 - $0.44 that was reported"!!! I can not figure what the big money managers want from a company before they become interested in buying its stock. From the folks on the conference call, there are at least a couple of money managers who are going their job and are INVESTING their clients money and not just following the band wagon of blindly buying large stocks because that is where the money is going. As long as money managers are speculating with their clients money and not INVESTING, the only things going against SBSE is its size. You stated "When a company like this is selling at $25/share something is very wrong with our investment community". Let me add, when highly paid money managers would rather put client money into a large cap company growing at 12% and selling at a 25x PE ratio than a smaller cap company growing at above 20% and selling at a 12x forward PE ratio, that money manager is not doing his job with any long term interests of his clients in mind. All of us in SBSE will do very well over the long term. Three years from now when the stock has split twice and investors are looking at a the year graph saying to themselves, wish we had bought this baby back when it was $6. Well folks, that is us NOW!!! Add for the few money managers with the guts and foresight to buy into a GREAT company early, when your 5 year track records blows away all those band wagon riders and uncreative follower type managers out there, you can smile along with us 'little guys'! Good luck to all of us invested in this truly fine company. Chris ....