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Technology Stocks : Genesis Microchip (GNSS) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (272)	3/18/1999 9:33:00 PM
From: The Ox	Read Replies (1) \| Respond to of 1277

Even with at 35% tax rate, if the company shows sequential growth in the range of 35% per quarter the stock deserves a much higher PE then 60, in my opinion. Keep in mind the company expects margins to improve going forward. Another stock I follow has shown sequential growth in the 10 to 15% range and the stock trades at about a 60 PE, FWIW. While I understand people voicing concerns about the quick appreciation in the stock price, that should not be a limiting factor if the company produces the numbers. I see today as sell-the-news, nothing more. Have any analysts come out with comments?

To: Glenn Petersen who wrote (272)	3/18/1999 11:31:00 PM
From: Jenna	Read Replies (1) \| Respond to of 1277

GNSS look at the analysis below: "Pricey, when has that been a deterent for a stock to rise? If GNSS is pricey than what is EPAY? or TUTS? because I use 3 different kinds of value indicators and the worst of it says GNSS is perhap worth $22 a share and that is not half as bad as companies that are trading at $50 and worth $15 a share. Also their growth going forward is FROM 35% to 43%.. The stock was manipulated probably and I expect to see some gains while the manipulators take a position as soon as the selling dissipates. Unfortunately I overslept this morning and did not see the stock was down nearly 2 points until afternoon, but I would have done nothing either way. Of course put in a stop but give it a few days. These was one of best stocks for 1998-99. Digital image chips developer Genesis Microchip (Nasdaq:GNSS - news) fell $1 13/16 to $29 7/8 after reporting fiscal Q3 EPS of $0.19, which excludes income taxes due to tax loss carryforwards. On a fully taxed basis, the company ended up earning about $0.13, which was in line with analysts' estimates. Genesis reportedly said during a conference call that it sees the portion of its revenue mix represented by digital projection products and imaging systems declining in the coming periods. In other words, future growth will be driven almost exclusively by the firm's flat panel display chips, which accounted for about two-thirds of revenues during the recent period. But if the 32% sequential revenue growth in the flat-panel business cited by the company in Q3 is any indication, then Genesis's growth potential looks pretty strong. With today's drop, Genesis is trading at about 35 times expected fiscal 2000 earnings of $0.84 per share -- in the same neighborhood as the 35% five-year earnings growth rate estimated by the two analysts surveyed by Zacks.