SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : RGFX Raster Graphics
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ilan saadia who wrote (35)7/10/1997 12:12:00 AM
From: Jeff Lawlor   of 593
 
It's good to see that some others are following this one. I've become enamored with RGFX after doing a stock screen for high growth companies with good balance sheets and low PE. This company met my screening criteria and after doing some research, I decided that I wanted in.

I think the P5000 is the key here. They accelerated the launch of this product to mid-May due to very positive response from the production printing industry. As Darren stated, if this product doesn't cannibalize a large percentage of their DCS 5442 sales, they will be in very good shape to continue their growth patterns.

I know of 2 brokerage firms that follow RGFX - Prudential Securities and Brean Murray (I'm not too familiar with this firm). Prudential rates it a Buy but considers it a high risk investment. Their outlook for the second quarter was conservative due to manufacturing rampup costs associated with P5000. However, the outlook for the second half of the year was optimistic due to P5000's impact on revenue. One statement was very encouraging - "The P5000 generated more leads than any product in RGFX's history." Their price target for 12/97 was $12. Brean Murray's report rated RGFX accumulate.

RGFX's major competitor and only real comparable is ENCAD and they are trading around 16X 1998 EPS whereas RGFX is around 9X 1998 EPS. Maybe with the inception of the P5000 and continued diversification in revenue sources (printers, consumables, Colourpass, etc.), the street will begin to recognize this company.

Long on RGFX @ 7
Jeff
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News