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I understand why you feel the way you do on this one. It's got just the right flavor for that special pick me up. The kind that helps the boat anchors in the portfolio not look so bad. But, I want to be a believer, I really, really do! So, get me past the following;

DSO at 71 days! Bloated. Uncle Vinny could do a better job at collections. Yeah, I know, the overseas element, but with a $600K reduction in exchange rate loss, 97 - 98, is it worth turning A/R at 5?!

Ok. Profitability. 9.9 pretax (And look at the taxes!!) Help me here. with $170mm gross and Zip in inventory, R&D at $29mm, where's the joy?! Bottom Line Blues.

Earnings. OK, so they shot the sheriff. Is allowing a public company to run on mistated '96 spreads a sign of growth or pre-madonna. . . I for one understand the reluctance on the part of investors, shallow or not. There are some things that just won't fly. Like Pigs.

Relative strength = 31. OK not their fault.

Share growth, not too bad, considering the cards "inside" the vest, to coin a phrase.

The one that really gets me is ROE @ 8.6

I am attracted here becase I understand the market, know the competition, and am familiar with the product.
Just can't get past that management thing.

At the alter,

nowise, still

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A thoughtful post; hard to answer all your points. I didn't quite dig out the details, but aren't the dso's trending down? A small point, I agree.

I am still accumulating modestly at this attractive price; I see not much downside. I am hopeful short term for good numbers Q1 and better ones, Q2.

I think Moyer (new CFO) is a good pickup; been there/done that at West. Digtial and Nat. Semi; should be able to manage earnings. They have been staffing up and expense look high, maybe that's why. I will be backing away if earnings are bad. I don't pay much attention to the restatement Q4 tho don't understand it. If no CFO, someone slipped up but they still made year numbers.
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Thanks for the response.

Sorry, DSO is getting worse.

I hear you on earnings, though.

So tempting . . . , but if there's a problem, there's a problem.

Wanna buy 'em out?

nowise, still.
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By the way, checked out MDCO yet?
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I have to admit the last earnings report has been disapointing - however I will be watching the change in DSO. What is the standard for the industry? What are the company's terms? If they are 30 days I have to agree - they really need to focus on collections but I would suspect that standard terms are closer to 60 days. My gut tells me that Moyer will be putting as much bad news out of the way as quickly as possible in an effort to really post some heavy gains going forward. I am impressed with the top-line growth - any time you can gain share in this kind of competitive market it is usually a good thing - although at what price. Typically in any company who has so much of their business coming in in the 4th qtr, 1st quarter will look pretty un-exciting. I am still buying but the techs as a whole are starting to worry me.
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