Yes, all by extrapolation of data. The pieces came more into the realm of predictability when IGK was spun off. That left INTF with about $18 million in revenues. The other division, CLEO, has had steady revenues of between $7.5 to $8.5 million for some time, cash from said operation is spun into the "L2i" segment. That would leave about $10 million available for the "L2i" segment which, at first glance, I believe for the fiscal year ended September 1999 is too much.
Nonetheless, the estimates as to where the revenues came from based upon increases in gross margins suggest that the "L2i" segment did about $5 million for last year and possibly more. I would expect that number to more than triple this year.
It has been a tough call between buyouts and going it alone with this company. We have had no less than three unsolicited offer to acquire our shares, the last of which, although not acceptable exceeded our initial targets.
Given the strength of the company's product, the blossoming of the industry within which it operates, the quality of its management and its clients and partners, we are more inclined to raise out cash targets to $110 a share with the potential to accept a buyout from a known and qualified entity, for stock of slightly less than that.
CKFR buying BlueGill set the levels of takeover in this industry. There is but one true competitor and that is XNS.TO and their market capitalization is still higher with our revenues in the comparable segment of MyCopy being higher than theirs.
Stock goes higher on its own merits. With the Y2K freeze being lifted early, I will be increasing my quarterly predictions for the second and third fiscal quarters of 2000. |
