MORP - Moore Products Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : MORP - Moore Products

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Steve Ruggi who wrote (19)	2/1/1998 6:55:00 PM
From: Thomas J Engelsma	Read Replies (1) of 27

Steve, PSR or Price to Sales valuation represents looking at buying the company outright (not just 1000 shares) In MORPs case, it would cost $34.5 * 2.5mill (market cap) plus any outstanding long term debt - which is 0 for MORP. Next you compare it to the annual sales of 164mill -- history says that the company will achieve a 1:1 ratio with sales. So for MORP one of the following must happen a) sales would have to decline -- not likely as sales are growing in excess of 10% b) number of shares would need to increase -- or mgnt would have issue more shares -- not likely, no need for the cash. c) Long term debt would have to go up-- again not likely, as there is no need for the cash, in the event that MORP would buy another company, the sales would be accretive and virtually eliminate the long term debt. d) share price would have to go up -- only thing on the list that looks probable. Remember different companys command different PSRs, MORP is in a group that ranges/averages/median of 1.3 Later, TOM

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next