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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Shane M who wrote (5150)	10/16/1998 11:08:00 AM
From: Pirate	Read Replies (1) \| Respond to of 78918

Eqnx - a serious "value play"? Here's why (I believe)... -Trading at low PE of 10. -Trading close to 52 week low of $6.75 (presently $8.375), 52 week high was $18. -Has been inching up in anticipation of earnings over past two weeks. -Was hammered down last Q due to a small shortfall because a major order from one OEM slipped from Q2 to Q3. -$14M in cash, no debt. -Heavy Institution ownership and insider ownership. -CEO still holds most of his stock - has sold very little into the market even though stock price has climbed. -Dgii (Digi International) is closest competitor and is trading at a PE of 16 - Eqnx is was ahead of them in management, focus, product and technology. -A great Q3 is expected, with rumors of another major OEM deal already signed. -No exposure to Asia, very little to L.A. or Europe -New products being released which puts them into a new market altogether with much higher average PEs (Remote Access, NT Networking, Terminal Servers, etc - ASND, LU, XYLN, etc) -Ripe for possible takeover, or logically may expand through acquistions Is this what this group might call a value play?

To: Shane M who wrote (5150)	10/16/1998 12:54:00 PM
From: Brendan W	Read Replies (1) \| Respond to of 78918

Shane, why do you say OMX doesn't fit value criteria? It's trading below book ... forward and trailing PEs are in the 8 to 9 range... it's got a strong balance sheet. I opened a position at 8 1/8 after their warning ... I'll buy more if the market returns to tanking. BTW, per Morgan Stanley the primary negatives are that same store sales trail the competition and susceptibility to price deflation and weak demand on office equipment. On the latter I don't know if they differ from SPLS and ODP. One other positive research snippet: "Management remains on track with its plan to fix gross margins and rationalize its personal computer business." That would be nice if they're right.

To: Shane M who wrote (5150)	10/19/1998 12:29:00 AM
From: Paul Senior	Respond to of 78918

Hi Shane: Yes, I think OMX could be a value stock too. But I have no insight into its business or prospects. Looks like 3 giant competitors carving up USA and some outside markets. Nobody's going to get a competitive advantage for long. But there is a a business there. Stock is selling below book and maybe at a low psr. Near it's lows again, I could see the stock at some point cycling up over its book value- giving the investor a nice profit if bought right. Paul.