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Technology Stocks : Thomas Group (TGIS) undervalued

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To: denise v. who wrote (7)12/29/1996 11:53:00 PM
From: Chris Kay   of 35
 
Denise, CPQ and WDC both look overextended technically. I also see a risk that the Network Computer and similar network devices may affect the long term business prospects of these companies unless they are able to adapt.

GNT seems interesting. Its diversification into new finance markets where it can take advantage of existing company skills, such as superior credit decision making, efficient loan servicing and loan securitization is a positive. But with 88% institutional ownership, it's pretty well already discovered and if the institutions decide to get out.... So the upside may be more limited than say TGIS ;)

12/29/96 Telescan Information on GNT

I. VALUATION CRITERIA

P/E Ratio............................. 18.6

Projected P/E Ratio (Next FY)......... 13.3

Relative P/E Ratio to stock history... 23.4

Price-to-Cash Flow Ratio.............. 17.6

Price-to-Book Value Ratio............. 4.6

Relative Price-to-Book Value Ratio.... 4.8

Price-to-Sales Ratio.................. 6.6

Company Growth Ratio.................. 1.5

II. PERFORMANCE INDICATORS

Stock Price........................... 39.6

Percent Yield......................... 0.6

# quarterly Dividend incr. - 5 yrs... 15.0

# quarterly Dividend incr. - 10 yrs... 22.0

5-Year Dividend Growth Rate........... 31.5

III. EARNINGS INDICATORS

Earnings Per Share.................... 2.1

1 Year Earnings Growth Rate........... 29.0

3-Year Earnings Growth Rate........... 36.7

5-Year Earnings Growth Rate........... 38.7

# quarterly EPS increases - 5 yrs.... 19.0

# quarterly EPS increases - 10 yrs.... 28.0

Current FY Proj. EPS Growth........... 20.0

Next FY Proj. EPS Growth.............. 35.3

Annlzd. 5-Yr. Proj. EPS Growth........ 19.4

VIII. BACKGROUND INDICATORS

# Institutional Holders............... 628.0

% Institutional Holders............... 88.0

# Shares Outstanding.................. 137.4

Market Capitalization................. 544.5

>>>Think of the fun you could have - hiking in Nepal, safaris in Africa, enjoying the beach in Bali, etc. <p>
I'm thinking of it, but right now I'm still having fun at work climbing the corporate ladder at a large U.S. east coast bank. And I don't have kids, though sometimes I regret it. Other than 2 weeks off during Xmas to spend with aging parents, I haven't taken more than a week off at a time during the past five years. I'll likely retire within 10 years before turning 50.

Denise, I noticed Japan in your profile. Did you move there to teach or are you Japanese? Do you think the Japanese market may turnaround this year? I've been considering country specific mutual funds

Chris
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