from thepicker.com play of the weekCompany Thinkpath.com
Ticker THTH
Recent Price (close 3/13/00) $2.75
Three Month Target Price $15.00
Over the past three months IT Staffing (now Thinkpath.com) acquired CAD CAM Inc. and ObjectArts Inc. to expand its service offerings. On February 24, 2000 IT Staffing (NASDAQ: ITST) changed its name to Thinkpath.com (NASDAQ: THTH) to more accurately reflects its new line of services which include engineering recruiting, consulting, technical training, and skills management technology, and its status as an Application Service Provider (ASP). These new line of services reorient the former IT Staffing?s industry classification from Staffing and Outsourcing Services to Business Software and Services.
A quick look at the different valuations within these two industries reveals the amazing potential that lay dormant in THTH?s stock price. Staffing and Outsourcing Services as an industry has a P/E Ratio of 53.73 while Business Software and Services as an industry has a P/E Ratio of 238.23. Thinkpath.com, with a P/E Ratio of only 8.5, is one of the most undervalued stocks on the market!
To further lay claim to Thinkpath.com?s undervalued status take a look at the following key financial numbers:
Thinkpath.com (company) Business Software & Services (industry)
12-Month Revenue Growth 561.7% 7.2%
12-Month New Income Growth 600.0% (6.4)%
12-Month EPS Growth 118.2% (21.4)%
The amazing growth shown in these numbers is not a fluke. IT Staffing (presently Thinkpath.com) has consistently reported remarkable revenue growth since the companies inception in 1996 as follows:
Year
Revenue (millions of $)
1996 .8
1997 4.7
1998 12.5
First 3 Quarters of 1999 27.4
And with a gross profit percentage of only 40% the potential for increased income is huge! With such a high gross margin, consistent growth, a market capitalization of only 9.6 million, the companies new standing as a technology stock and its blatantly undervalued status by all of the traditional indicators, we believe that Thinkpath.com will see tremendous growth in the coming weeks. But as always here are some links that will assist you in your due diligence, good luck!
Company Homepage: www.thinkpath.com
Company Profile at Yahoo: biz.yahoo.com/p/t/thth.html
Company Capsule at Hoovers: www.hoovers.com/co/capsule/6/0,2163,58406,00.html |
