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

To: Clay Takaya who wrote (667)	10/12/1998 11:57:00 PM
From: Christopher Brainard	Respond to of 1540

Clay: Thanks for the post. Nice to have an ally in trying to fend off this crazy market. I was afraid the news would be as you reported. No storm clouds yet, but they could be coming any time. In todays market, they need even less reason, than worry, to sell a good stock. Let's see, at $19.25 and earnings of $1.64 in the bank, that means a trailing PE of 11.73x. Oh, that is much greater than 8x (the going PE for small caps), sell baby. Clay, do you think it too much to expect that if the economy does slips into recession, that SBSE will experience a temporary reduction in their growth rate as opposed to an overall reduction in earnings. If only growth was to slow, the stock should find support not far from hear. I agree 100% with your comments regarding credibility, but even SBSE's great management team can not head off a recession. Long term this stock is money in the bank. Short term I am afraid we are going to be in for some more tough times. But we have been through this before. Perhaps someday the strong hands in this stock will keep the price from doing one of its periodic bungie drops. The European expansion should not add to the bottom line before fiscal 2000. If earnings flatten out over the next few quarters, the stock might not really move any higher until this time next year. But when things turn, the old highs will most surely be blown away. Then again, there might not be any recession and the good times for SBSE shareholders might be just around the corner. In either event I will not be a seller and like you, if the stock drops to really crazy levels, even though I do not have a lot of dry powder available, I will shoot the remained of my dying dogs and BUY MORE SBSE. Good luck my friend, let's hope SBSE's diversification moves really pays off in this current market place. Chris .....

To: Clay Takaya who wrote (667)	10/14/1998 10:28:00 AM
From: Christopher Brainard	Read Replies (3) \| Respond to of 1540

Hi Clay, Looks like a blow out day today. Trading volume is over 1 million shares and it is only 10:15 AM. Time to buy with a 12-24 month time frame in mind. At 5.7x estimates 1999 earnings, I do not see much downside risk. Unless the entire economy tanks next year, SBS should be able to meet their new estimates. I listened to the conference call and did not feel they were playing games with their estimates. As you reveiw the Yahoo messages you will note that I have been branded as being too wrapped up in this company to see things clearly. Perhaps this post is correct, or perhaps you and I both can see the real value in this company and can take advantage of the gross over reaction to a short term change in their future prospects. Although at 1 million shares traded, we do have company in our belief in SBS. The way I figure it, time to add to our positions. We might go lower form here in the very short term, but two years from now we will be happy that we bought at these levels. Take care my friend. Chris ...