Osicom(FIBR) Message Board

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Technology Stocks : Osicom(FIBR)

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To: Patrick Watz who wrote (668)	3/29/1997 9:15:00 AM
From: Roger Brown	of 10479

Something I was thinking about this morning that I haven't seen posted yet....Taking last Qs $33.3 MM in revenues * post tax margins of .17 (I think we will eventually get to this level over 2 years or so) = $5.66 MM in net Income. Bring that down to 10 MM shares primary, and you get .57 EPS... SO the differential we can look forward to is (right now) .43 EPS.... From followig a lot of stocks that are growing at least a stable 50% per year in earnings, the majority of them lie priced at 100 Times their last Q earnings (I'm being very general here). That would be $57 for FIBR in the scenario above... When will we get there??? Who knows....This is just an exercise to show how much margin expansion we have to loook forward to assuming that FIBR will eventually have margins even lower (17%) than the norm in htis area of more than 20%....So i'm even being conservative here.... And of course, the company is going to be growing also....So by the time FIBR gets to the 17% margins, the EPS will be much greater than .57....IN fact (1.5)(1.5)(.57)=$1.28 over a 2-3 year period. That's 50% growth from now in top line revenues assummed. That will land ~$128 if the pace can continue..... Something to think about...top growth compared to where we stand now....Any comments???....

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