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To: shane forbes who wrote (14938)	9/11/1998 5:19:00 PM
From: Richard H.	Respond to of 25814

From Briefing... The Dirty Dozen Whether we are in a bull market or a bear market is really a matter of perspective. We're reminded of the phrase, it's a recession when your friend losses his job, it's a depression when you lose yours. The same can be said with regard to affixing a label to the market. It's a bull market when your friend's stocks go down, it's a bear market when your stocks go down. Listed in the table below are a dozen technology stocks, which are off their 52-wk highs by an average of 72%. There is no question that this "dirty dozen" has experienced declines worthy of the bear moniker. Our purpose in profiling these stocks today is not to show that many stocks are down much more than the averages (we all know that), but to identify stocks that are so beaten down that the potential for upside surprises now outweighs the risk of additional bad news. That is not to say that any or all of these stocks will rebound immediately. To the contrary lousy relative strength trends suggest that they will lag the market at least until investor psychology changes. Such was the case again yesterday, as the basket of 12 stocks fell by an average of 3.9% versus declines of 2.4% and 2.6% for the Nasdaq and S&P 500, respectively. But for those investors seeking out deep bargains the table below could offer some interesting possibilities. There were only two criteria for making the list: decline of at least 60% from 52-wk high and projected profitability in current fiscal year. In other words, we wanted stocks that were down but not completely out. You will also notice that with the exception of one stock, Cabletron Systems (CS), each company sports a PEG of under 1.00. Stock-Price (9/10 Close) % off 52-wk high Estimated P/E Projected 5-yr growth rate PEG AFCI - 6 1/4 86.0% 16.0 38.6% 0.42 CS - 8 1/4 77.2 19.2 18.9 1.01 JDAS - 11 3/8 71.0 12.8 37.7 0.34 JBL - 28 1/8 60.9 13.4 28.8 0.47 LSI - 12 64.4 16.2 18.6 0.87 NVLS - 24 1/8 63.7 17.9 24.8 0.72 PMTC - 9 15/16 72.6 13.6 26.2 0.52 PAIR - 9 9/32 70.3 13.9 31.6 0.44 QNTM - 14 7/8 65.6 15.1 19.1 0.79 RMDY - 8 7/8 81.4 11.0 32.2 0.34 TER - 18 1/4 69.2 12.3 20.4 0.60 VLSI - 7 1/4 81.3 14.5 16.3 0.89 Remember this table is meant as a place to start, not end, your research. In addition, stocks that fall as far as the ones listed above typically do so for good reason: poor industry conditions, lack of earnings visibility, loss of major client, increased competition, etc. For whatever reason, each of these stocks is discounted relative to the market but that does not mean they are without risk.