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I think your 2-3x in your timeframe is a bit aggressive. I do however, agree it is oversold. It is selling around book value. Due to the acquisition they did, aftertax cash flow is obscured by goodwill, and IMO, in the coming year, investors will begin to seek to look through reported earnings as poolings of interest mergers/acquisitions go the way of the Icythiosaur. (pardon my spelling) I take the viewpoint that in 7-8 months, the world will be evaluating growth stocks based on calendar 2001 estimates. This stock has a June fiscal year. Given that they can easily earn a buck per share for cal. 2001, in the fall of 2000, after the June quarter is out of the way, IMO, people will begin to put a growth multiple on $1.00 of cal. 2001 eps. But since they bagged investors, this will not happen instantly. For investors (if there are any left in the world - most so-called investors are traders), that should not be a bother. |
