PNDS: Fast Growing Ally & "Protege" of Sun Microsystems...
Pinnacle Data Systems, Incorporated integrates and designs custom hardware and software solutions around a variety of Sun board platforms.... PDSi also offers customers a range of engineering, integration and repair services that can be customized to their needs... These services are supported by core competencies that focus on board-level expertise with SPARC™ technology... Through its partnerships with Sun Microelectronics Division and the Sun Software and Technology Division, PDSi has the resources to meet the needs of the most demanding OEM's... CEO: John Bair... Phone: 614-748 1150
1) Products, Services and Investors Information:
pinnacle.com
2) Share Structure:
Outstanding: 1.2 Million shares...
Fully Diluted: 1.56 Million shares...
Float: about 700,000 shares...
3) Business Growth:
Business appears to be growing at a torrid pace, judging by the tremendous increase in necessary floor space required to operate. From about 22,000 sq.ft. in the first Quarter of 1999, it has now grown 5 FOLDS to some 113,000 sq.ft.... Nine months earnings were 14 cents a share and CEO John Bair stated at a recent shareholders meeting that he expected a 1999 EPS between 25 and 30 cents... It practically doubled 1998 sales and "Booked" some $17 millions worth of Business in 1999...
4) Evaluation:
PNDS has filed its 10SB on 13th December 1999 and expects to become fully reporting 60 days later, on 11th February, since SEC has not sent any comments... Such a Company would normally have a PE ratio of about 25... However, IMO the following factors mitigate in favor of a much higher PE of 50...
1) Having Dealt extensively in UNIX, PNDS is now involed with LINUX...
2) It is working very closely with Sun Microsystems (SUNW), which has a PE of 109...
3) It's high anticipated rate of Growth warrants a high PE...
4) Small Float and outstanding number of shares...
Therefore, based on the expected TRAILING EPS of 25/30 and estimated PE of 50, I believe a share price of $15.00 could be expected in the short term... If the FORWARD EPS is double that of 1999, which is a reasonable expectation, then we could well see $30.00 or so, a year from now... It closed today at $5.50, up 13%...
5) Recent News: biz.yahoo.com
6) Disclaimer:
This is only the personal opinion of a potentially biased long, not a recommendation and no responsibility is accepted for errors or omissions... Would-be investors should carry out extensive Due Diligence and only invest what they can afford to lose...
JMHO, F. Goelo + + +
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