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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: flickerful who wrote (3223)	8/12/1998 6:43:00 PM
From: killybegs	Read Replies (1) \| Respond to of 17679

This is from this week's Forbes ASAP (article re technology stock investing)......... "Another effective indicator of future growth is the amount a company spends on R&D. Michael Murphy, editor of the California Technology Stock Letter, uses a price to-growth-flow ratio where growth flow equals the firm's earnings plus R&D expenditures. Says Murphy, "R&D gives a good indication of future revenues. Companies with a price-to-growth-flow ratio of 10 or below look cheap." And even when earnings drop significantly, the ratio can still give you a good indication of the firm's potential." Ampex to the point is selling a little over 2 times growth flow.