Hi, Mike.
I came across a research report last week that was written by another analyst that discovered Matrixx and wrote a report on the company. He is the second analyst in about a month to write a report on this company, and I am pleased that the stock is finally getting some recognition by analysts. I am not going to post his name here, but I will provide some details from his report. He estimates that Matrixx will earn 30 cents per share in 2003, 45 cents per share in 2004, and 80 cents per share in 2005. His price target is $20, but if the market discounts earnings per share of 80 cents in 2005, and believes that the growth will continue in 2006, the stock will undoubtedly trade a lot higher than 20. My estimate of 26 cents per share in 2003 is based on revenue growth of 30% from 2002, but the company will make 30 cents per share if they grow revenues about 35%, which I think is very doable. If they grow revenues 40% this year, they would earn about 37 cents per share in 2003, and estimates for 2004 would go up.
The only thing that I will say about the analyst here is that he previously worked as a securities analyst for Value Line and was the Executive Vice President-Research for a Boston based investment bank before starting his own firm. According to his bio, he seeks out "emerging growth stocks with uncommon investment potential", which fits this company well. If anyone wants his contact information, please PM me and I'll send it to you.
Dan |
