The more I look at PWER the more it looks like (at this time at least) a roll-up rather than a gorilla. Company has a lot going for it, especially it's products being in demand. According to the 10-k, its sales doubled in 1999 versus 1998. However, a big chunk of the sales increase appears to be due to an August 1998 and January 1999 acquisition. Also, for those that look at these things, according to the most recent 10Q, the company is cash-flow negative.
Just a thought. If the market for these products is really hot, then all participants should benefit. PWER lists ATSN as one of its competitors (along with LU and Astec - not the American blacktop company, but a European company). ATSN is much more reasonably valued and is cash-flow positive. On the other hand, if one believes that PWER has some proprietary products that give it clear advantages over its competitors, then that may be the way to go - I just wouldn't dive in now.
Just another thought. Peter Lynch says whenever someone says a company is the next anything, in this case the "next Cisco" - avoid it. |
