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Technology Stocks : Smart Modular - diamond in the rough? -- Ignore unavailable to you. Want to Upgrade?

To: Joe Donato who wrote (1871)	1/6/1999 2:39:00 PM
From: Andreas	Read Replies (1) \| Respond to of 2020

To Thread; Why smod is undervalued and why it will stay undervalued. By most common measurements smod is undervalued. Forward p/e is under 20, average projected annual eps growth for next five years is 20% or more. Balance sheets is strong with no long-term debt and strong current ratio. And on and on I could go. So why is this stock still $10.00/shr below its 52 week high? Consider the following. Institutions and insiders collectively own approximately 72% of all shares outstanding. Forty percent is owned by insiders (Ajay and Patel alone own 40%). Institutions own about 31.7%. In other words, smod is thinly traded. The fact that more than 72% of all shares are owned by insiders and institutions is a real negative. It is a risk factor that many investors do not want to deal with. The average investor is simply not tuned into smod and when he/she looks at smod as a potential investment and also looks at the ownership of smod they tend to look elsewhere. Although total capitalization is in excess of $1 billion the amount of capitalization in the hands of joe public is only $280,000,000. Therefore, smod shares are subject to volatile and severe downward swings should insiders and institutions decide to sell.