I'm hoping w/ a little patience, we'll make out okay. I don't know where you got in at, but w/o any bad news, I'd think that any dips down to 1 3/4 or 1 7/8 would be buying opportunities. I don't know if you own any other micro-cap or mini-priced stocks at present, but nothing I'm seeing is on fire right now, which I'm thinking is due to these stocks being momentarily out of favor (due to so-called gurus who've deemed them to be non-performers until early-'97 - don't blink, it could change any moment).
Based on past history, TRNT should do fine with the expected migration to NT 4.0, as a lot of co.'s are already going that direction (even my co. has decided to go NT - too bad we're up here in the San Juans, as hiring TRNT to come in any ease our transition would be cost prohibitive w/ all the travel).
My read on the co. (based on my research, as well as Bob Davis'), is that mgmt.'s abilities would have to be on a sharp decline for TRNT not to succeed. I'm confident that any loll in the co.'s continued sales and EPS growth is indeed related to the co.'s decision to refocus on the (high margin) service end of their business vs. the commodity hardware sales.
I'm not sure exactly where Max Bowser was going w/ his comments on TRNT in last month's Bowser Report. Among his comments, he cited two reasons for why he feels this has seen a decline. One reason was that TRNT did not participate in the most recent mini-rally of tech stocks, and that in and of itself was a reason for the stock to be out of favor. I guess I'm kind of confused here, as his logic seems to be that because the share price didn't go up, it went down. Whatever, but I don't see the cause and effect. Another reason he cited was that there are rumors that TRNT may be on the selling block. Once again, I don't see this as a reason for the stock not to be in play. It goes w/o reason to say that there is going to be some consolidation w/in the industry, but usually when a growing co. is purchased by another, the acquired co. is usually purchased at somewhat of a premium due to the proven earnings power. My thoughts here lead me in an opposite direction of Max.
I wouln't be completely caught off-guard if the next qtr. earnings report was flat (once again, because of the change in co. direction), but I think time will show TRNT to have good investment potential.
- Khris |
