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Strategies & Market Trends : Wedges, triangles, and stuff: Chart patterns for breakouts

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To: Doug R who wrote (52)6/3/1997 12:03:00 AM
From: HeyRainier   of 257
 
Ault(AULT) update:

I spoke to the CFO this morning about its earnings outlook, and he told me
that the company was comfortable with next year's earnings projection of
$0.73, reaffirming the 27.2% growth rate for the next five quarters looking
ahead. A price/earnings ratio in line with such a growth rate would imply
a "fair value" of approximately 14 11/16. I have a position in this now
and have a near term target of $13.50.

He also said that the company was aware of its languishing stock price, which
hasn't budged for nearly a year, and said that next week they were going to
try to address this by making their company more visible to outside shareholders.
He attributed the decline of the stock to the institutions' desire to flock
to larger issues, and added that the stock's price reflected only market sentiment
with regard to small-cap issues, not the fundamentals underlying the stock.

Hope this helps.

Regards,

Rainier
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