Bobcat, good thinking. Tx.
Rebuttal:
Consider what AOL and Yahoo have done in the US market place and how their stock eventually roared.
Consider that China will need infrastructure - fiber, hubs, routers, switches, systems, software, skills, consulting, outsourcing, services.
Consider lastly, that Wong has connections inside the 'inside'.
I'll give you one on the point that turning 50% of revenues into the bottom line may be a challenge. It may be overly optimistic and a tough target to hit. Mind you, GTCI isn't the mammoth organization that a Cisco or a Microsoft is nor do I know what Wong's overall sales projections are made of. Services can be pretty profitable and so can software! From a pure distribution standpoint, I think they could hit the EPS target, and I'm less concerned about gross profit margins than I am with overall EPS.
I want to see $.69 EPS.
As far as historical data, their first software sale was darn impressive. I'm with you, it's all in the revenues and the margins. I expect we'll see more announcements shortly - just a feeling. |
