OK, let's get the numbers settled once and for all. My last posting
was in error.
As of Dec 31, 1996:
Cash/Share = $56.482M/11.829M shs = $4.77 Cash/share
Annual Sales = $3.06/share vs. $2.84/share in 95
Quarterly sales = $0.93/share vs. $0.74/share in 4Q 95 (+25.7%)
EPS Annual -- not analyzed due to non-recurring charges
EPS Quarterly = $.05/sh vs. $.13/sh (-62%) due to increased
SGA expense
Operating earnings were -$69,000, but additional income (probably
interest income kicked the final earnings up to $.05/sh.
Long Term Debt is $0.17/share
Current Ratio is 69.948M/12.361M=5.66
At 6 ask, the enterprise/sales ratio=(6-4.77 cash)/3.06 sales= 0.40.
The Enterprise/97 earnings (~20) is 6.65.
Latest estimates from Wheat First and First Albany are .18-.22/sh
for 97, and around .30/sh in 98.
Assuming avg 50M in cash througout 97, with only a 5% return on that
sum, we get .20/sh in interest earnings. The 97 estimates basically
assume no operating earnings, which is what we got 4Q 96.
The Enterprise/97 earnings (~.20) is 6.65.
News:
Only news release this quarter was 3/24-- release of Templar 2.1.
Nov 18 Barrons: Chip Morris of TRP Sci & Tech promoted Premenos as
a buy (then at 8 7/8) because "financial services will be one of
the earliest commerce applications on the internet.""
Summary: no new deals announced this quarter. If the company is going
to be operating earnings neutral, then this 6 is fair to overpriced. price. If the company experiences any growth whatsoever in its product lines (which it has -- but offset by SGA expense) over and above
SGA, then the shares become a buy at 6. Comments?
Michael Burry |
