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Technology Stocks : Equinox Systems (EQNX) -- Ignore unavailable to you. Want to Upgrade?

To: HeyRainier who wrote (650)	11/6/1998 11:33:00 PM
From: Scott H. Davis	Read Replies (1) \| Respond to of 765

Rainier, In all honesty, my initial gut response was 18, then I "talked myself" into 20 as I made the case for 18 (don't worry - I didn't answer.) Between the cash position, no debt including their own building, they are well positioned to absorb a bad qtr or two, which mitigates the volitility. My gut is that the EPS volitility causes analysts to play it safe. Also, to flesh out my multiple scenario, I don't see the market rewarding EQNX with anywhere near an 18 until they have a couple more good qtrs, showing that the .15 was a semi-fluke. It will take some time to restore trust, but as we saw before, once growth and trust meet, the appreciation can be substantial. Scott