*****OT*****
>>Do you know of any "bargains" in the tech stock market? Buy them, then share them with me. I will help drive the price up a little bit.
were you at all serious? given the board we're on, i'll presume you'd rather consider growth at a reasonable price vice value (or techs beaten down for good reason). while i'm generally loathe to plug stocks, if wireline and wireless telecom floats your boat, then you might want to do your own homework on comverse technology (CMVT). while not a "bargain" and not nearly as sexy or highly valued as NTAP, CMVT does sport a heathy growth rate, solid fundamentals, a diverse global customer base, and in my opinion, comes at a wee bit less risk.
if i've already turned you off, then you know, stop reading. if not, here are a few details. CMVT makes "sophisticated telephone communication and recording systems for markets as diverse as telecommunications, law enforcement, and intelligence." last year they acquired domestic rival boston technology and are now the number two outfit in the voice mail/message system business surpassing northern telecom. yes, they're behind lucent's octel communications. (that's the major con, although lucent's been slow to deliver on their new IMA platform. CMVT also has some debt including convertibles and with a double-edged sword, enjoys a low-tax rate thanks to israeli law.)
most recent gross margin was at 60%, yearly net profit margins are at 16%, ROE is 28%, and quarterly EPS has increased by a 40% average over the past four quarters. EPS has been increasing sequentially over the past three years, and over the past three quarters, quarter-over-previous-year-quarter growth is 42%, 38%, and 48%.
in addition, they've surprised the street at least the past three quarters by 11%, 6%, and 16% or $0.06, $0.03, and $0.07, respectively.
the current estimate for the fourth quarter ending 1/99 is $0.63 which would be 44% over last year's fourth quarter. if they hit that number, that'd also be the year-over-year growth rate.
it's selling for roughly $75 for a one-quarter forward P/E of 32.
sorry if i spammed the board. it goes without saying ... but always always do your own homework. |
