I've been throwing the numbers around and have to say
that even though PCTL is coming up short on estimates, they will still exceed same quarter last year and record revenue totals.
This is what was said in the FOOL area regarding PCTL on 6/20...
Video conferencing equipment company PICTURETEL CORP. (Nasdaq:PCTL) slid $1 1/2 to $10 3/4 after the company said that Q2 revenues
will come in below estimates, but it still expects revenues to grow at least 5%. This is the second time in three quarters that Picturetel has disappointed. The company's quarterly revenues are still growing and staying above the pre-1997 quarterly revenue record of $121.3 million. Counting the low end of company estimates for the second quarter, Picturetel is now selling at a price-to-sal es ratio of 0.75. If the company could forecast sales a little bit better and maintain the net margin of 7.2% it achieved last year, its trailing earnings would be above the $1 per share mark. Its stock price would probably look a little different, too.
If you take the $130m to $135m the street estimates at deduct the approximate 4 - 6 % PCTL says it will come up short...
This leaves revenues for the quarter ranging from $122,000,000 to $129,900,000. With these quarterly revenues, PCTL will have continued to have gained. Growth is still positive and so are revenues.
This shows PCTL as a great investment. Fundementals! At these levels, it just a matter of time. It is very possible this stock is being manipulated. At some point, the MM will be forced to cover and up we go!
Also, there may be a softness here in the United States for PCTL equipment, but according to the company, Sales are great every where else in the world.
Regarding the letter to shareholders...
So far, they have held true to what they have said. Take a look at the bottom of the letter regarding a education. In a large western state, it says, that a deal was about to emerge, but details were still unavailable. Then, in the latter part of MAY, they announce a $3,000,000 deal in the state of California.
That same letter mentioned a large Mid-Western state. We have yet to hear any news regarding this. But, I bet we will be hearing more about this deal in the near future. Who knows, maybe they will announce this deal in conjunction with the earnings release to help ease invester fears.
Good Day!
Randy |
