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Technology Stocks : Elamex(ELAMF) -- Ignore unavailable to you. Want to Upgrade?

To: David Seltzer who wrote (233)	11/23/1998 6:53:00 PM
From: Douglas Ulmer	Read Replies (1) \| Respond to of 276

ELAMF is looking pretty cheap ELAMF is back down to its all time low of 4 and it looks pretty cheap to me at this level. Although they haven't grown much in revenues recently, operating margins are improving (1.4% in Q1, 3.4% in Q2, 4.3% in Q3). Supposing that revenues stay flat at 120M and margins improve to 5% (not far-fetched given that margins were 6.75% in '97 and 8.75 in '96), you've got $16 in revenues and $0.81 in operating income on sale for $4. Earnings are tricky to pin down because of the tax law, but the forward estimate is about .65. Finally, the GE deal might lead to revenue improvements. With a book value of $8/shr of which $2.16 is cash there doesn't seem to be much more downside. Anybody else ready to average down? Doug Ulmer