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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: browser who wrote (31481)	8/25/1998 10:30:00 AM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Robert, MUEI is one of the few boxmakers selling at just 2 times its fair value on my dividend discount model. Also, they make a good box. But I wouldn't buy them with Abby Joseph Cohen's money. The box market has seen declining unit growth rates for the past 3 years and this year will be no different in that regard. However, it will be different in that prices are much lower, and unit growth is not keeping pace with market price declines. MUEI is also one of the higher priced producers of regular desk and laptop pcs and fairly AWOL in the server and workstation markets. The cheap boxes and the servers and workstations are all that is selling decently, so MUEI has a poor market mix. Thanks to the Mormon Mafia, they do have some nice govt. contracts, so it is not like they are going out of business. But they are not likely to grow earnings in any sustained fashion. They could lose money this year, though if they hit breakeven, the bulls will call it a great turnaround. The simple fact is, this is a company selling in the mid teens that is going to earn nowhere near 50 cents a share until the next century, if ever. Yes, the analysts are calling for 61 cents a share next year, but they are driving with their eyes closed. No growth, high price to earnings multiple and a niche in the wrong part of the business would make me avoid them. That being said, I don't like to buy puts on stocks under $20 and do so rarely. So, right now, I am not playing MUEI. MB