Iwerks has turned around Message Board

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Non-Tech : Iwerks has turned around

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To: Gary105 who wrote (22)	9/19/1996 10:46:00 AM
From: Gary105	of 52

Upbeat conversation with investor relations. The person who now has the job works in their finance group. The positives far outweigh the negatives On negative side - lack of press releases coupled with recent insider sales by two former board members (who are no longer really insiders). On the positive side - they did not have the time to devote to press releases (low overhead expenses). They are not capacity limited. They can handle a fair amount of extra business with existing capacity by hiring temp and double shifting if need be. Their new CFO started yesterday and the board meets tomorrow. Expect press releases beginning next week on the new CFO and on positive results at some of their attractions (e.g Hoyts in Australia). They are comfortable (wink,wink) with analyst estimates of .03 for this first quarter, which is typically their slowest one of the year (1 cent a share last year). Robertson Stephenson is predicting 35cents for the fiscal year beginning now. That represents 35% growth from this years 26cents. Iwerks recent track record has been to better each quarter by a couple of cent per share - so its entirely conceivable that they earn over 40 cents a share - or 50% growth. Putting a reasonable growth P/E on either of these numbers results in a double digit share price. All this includes their partnering scenario where they forego some immediate profit to build an ongoing revenue strea. According to their IR/Finance spokesman they should generate 3X the profit from a partnering scenario job over a 5 year period So we are looking at a company with strong growth and a business model (partnering) for a sustained earnings stream. I may be wrong but we could see the low double digits within this FY. Gary

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