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Technology Stocks : RGFX Raster Graphics

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To: darren_ who wrote (92)7/27/1997 7:20:00 PM
From: joseph burns   of 593
 
Darren, I believe this stock is not just a strong buy but extremely undervalued. In looking at the companys recent quarterly reports i came upon a question. It seems the accounts receivable is within a percentage point of the next quarters revenue. Given that stat, could we speculate that the company should do at least 15.7 million in revenue for the next quarter (and they could beat it by much more given higher product sales) and then figure their profit at 8.7% which comes to about 14 cents per share. Given this as the bare minimum the company should (also basing the 4 th quarter on this formula) earn 53-55 cents per share for this year. Now if the company starts to have more exponential growth in the coming quarters earnings could be higher.
And earnings at a 40% clip as stated in the companys report means about 75-80 cents next year! Undervalued or correct me please??
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