Etana - I don't do Value Line, can't answer except that IHS originated in 91. I am not at all sure that I can answer you satisfactorily after reading your posts on ROTC thread, you are using 8.5 yr long data from a company that started at about $1.00 vs a company that started around $16.00. Does look like you have not suffered financially at this point. ROTC was at about the same point before the announcement than it is now, a little higher now I think. Also looks like your time frame for evaluating stock is way different than mine. Monday may give more clues, but both IHS and ROTC pulled up today. Anyway, why I bought -
An article in Jan 97 pointed out that IHS was oversold in a growing market with lower than usual dependence on Medicaid payment. The company had a PE of 11.2; a P/Book of 1.1; and an exceptional P/Sales of 0.42. Also EPS estimates for growth. IHS has not disappointed me, to say the least, since then. Its only decline has been related to negotiations for purchase of a lesser company (CRH in April), and IHS recovered nicely after abandoning the deal.
If you are looking for a five or eight or more steady growth company in this field, I think your are doing archeology; too much change going on. IHS has been aggressive, to the point of alarming S&P (and me), but ROTC, despite its good numbers, has not been able to match its stock price of May, 96. I hope these companies have reached a philosophical agreement that you and I might not - that's why I have hung on to my IHS despite the price drop; that plus its P/S is still well below 1 at 0.61.
Rather than just sell on Monday, you might put a Stop Limit on the price where you give up on ROTC.
Good Luck! |
