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Technology Stocks : INVX Innovex Comdex Winner !! -- Ignore unavailable to you. Want to Upgrade?

To: Kurthend who wrote (2752)	11/10/1998 12:58:00 PM
From: Gerald Walls	Read Replies (1) \| Respond to of 3029

Here's Briefing.Com's take: 08:55 ET ****** INNOVEX (INVX) 16 1/8. Risky business this disk drive industry. After the close yesterday, developer and manufacturer of lead wire assemblies for the disk drive industry Innovex (INVX) reported fiscal fourth quarter (Sep) profits of $0.13 per share. That was in-line with expectations, but down sharply from the year earlier $0.51 per share profit as revenues plunged 45%. When things are this bad, there isn't much to say, and the press release was a dry as they come, although there was a comment about anticipated increases in HIF shipments. The entire disk drive business is extremely volatile and INVX stock reflects that. It was a high flyer in late 1996 and early 1997 and in seven months quadrupled from 10 to over 40. That was it though. Since then it has headed south, and it has come off its 52-week high of 28 1/8 in April to just 9 five weeks ago. That means it has almost doubled in a little over a month in conjunction with the tech sector rally. But with profits of $0.13 per share this quarter, which would annualize to $0.52, the stock is not cheap at $16 unless business improves. That could certainly happen, and INVX has a lot of upside it business gets back on track. But investors should understand the technology well before taking a position in this industry. Business can deteriorate quickly in this fast paced, commodity type business, and trying to pick a bottom in these stocks is dangerous. A quick look at some of the other companies in this industry will show that, just because a stock was once much higher, is no assurance that it will move back in that direction.