Frank, Last year (June) at the Summit for Converging Technologies, held in Brussels, it became clear to me that SPCT was emerging as the emminent leader in this field. And now recently, they have really turned out the best products and are the definite technology leaders. They also have the most varied, and complete product line in this business sector, and are even expanding their product line.
I say this, because I believe some basic fundamental changes have taken place with SPCT, and they have turned the corner of a somewhat shakey start up small cap, and is now positioned to report results of a pretty fast growing small cap company. The market SPCT serves is expected to triple in the next two years. SPCT's market share is increasing, in an increasing market, a dynamic, I love as an investor.
SPCT is the world's lowest cost manufacture in several of their key product groups. Management seems good, although, I think we'll see some positive changes here soon.
I understand your apprehension, due to the roller coaster ride you've been on. But I believe SPCT is on their way to double revenue and triple profits in the next 24 months. With only 8.4 million shares outstanding, and expected upside earnings and revenues, I see a short term (2-4 months)jump in stock price into the 30's, and by the end of 1998, with revenues on pace for 300 million for 1999, and profits of $3 per share, SPCT I expect will be fairly valued in the $50-$60 range.
The downside risk at this point, I view as minimal, as referenced against the reward potential my analysis indicates. All the best, Good Trading.
LF |
