from YHOO board--SSB trying to stop bleeding TTIL<<<Salomon Smith Barney ~ January 29, 2002
by: attunity_for_long messages.yahoo.com
Long-Term Sentiment: Strong Buy 01/29/02 02:10 pm
Msg: 4676 of 4681
TTIL: Is The Hutchison Deal Lost? We Think Not; Reiterate 1H
TTI Team Telecom Intl Ltd(TTIL)*
Rating: 1H
As of 01/29/2002
Last Changed 07/30/2001
Victor Halpert
Robin Nazarzadeh
January 29, 2002 SUMMARY
* On Jan 29, ECTX announced a contract win with
TELECOMMUNICATIONS Hutchison Group for fraud detection on Hutchison's 3G networks - the contract was won in December.
* We believe there had been anticipation in the market
of TTIL winning a contract with Hutchison - leading to
some confusion regarding ECTX's win, and the
implications for TTIL.
* TTIL had NOT been bidding on a fraud detection
contract with Hutchison, but for a manager of managers
contract more related to network monitoring - TTIL has
NOT lost the Hutchison contract, which is yet to be
awarded.
* We still feel upbeat regarding TTIL's chances of
winning the Hutchison contract, and are confident of
TTIL's growth prospects.
* We reiterate our 1H rating and view the recent
weakness as a buying opportunity.
FUNDAMENTALS
P/E (12/01E) 23.5x
P/E (12/02E) 20.1x
TEV/EBITDA (12/01E) 18.4x
TEV/EBITDA (12/02E) 14.9x
Book Value/Share (12/01E) $7.62
Price/Book Value 3.6x
Dividend/Yield (12/01E) NA/NA
Revenue (12/01E) $60.2 mil.
Proj. Long-Term EPS Growth 35%
ROE (12/01E) 15.4%
Long-Term Debt to Capital(a) NA
OPINION
On Jan 29, ECtel (ECTX - 1H, $15.90) announced a contract win with Hutchison
Group for fraud detection on Hutchison's 3G networks - the contract was won
in December.
We believe there had been anticipation in the market of TTIL winning a
contract with Hutchison - leading to some confusion regarding ECTX's win, and
the implications for TTIL. TTIL had NOT been bidding on a fraud detection
contract with Hutchison, but for a manager of managers contract more related
to network monitoring. We do not believe that TTIL has lost the Hutchison
contract, which is yet to be awarded. We still feel upbeat regarding TTIL's
chances of winning the Hutchison contract, and are confident of TTIL's growth
prospects.
We reiterate our 1H rating and view the recent weakness as a buying
opportunity.
Posted as a reply to: Msg 4675 by sudera2002
Message Thread [ View ]>>>> |
