I'm hoping that we will beat the FY1998 estimate of ~$1.40, despite the impending secondary, due to (1) the acquisition of Denron (which appears to be synergistic), (2) the recent addition of manufacturing capacity in Europe and (3) lower supply costs through economies of scale. Assuming that net can grow about 50% next year, we might be able to make $1.60-$1.65 a share, including the additional shares to be offered in the secondary, which are largely offest by the interest income associated with the cash generated by the secondary. Granted, this is a very aggressive forecast, but it could happen.
Accordingly, assuming a 35 PE, my FY1998 target is 55. Short term, I'm guessing that we will base for about the next two months or so before breaking out.
In the alternative, the company could have a bad Q, and we could all lose our shirts. :-)
Matt |
