I got this from a broker (Raymond James) by phone this evening, so it is from memory. 97's EPS are projected to be 8 cents lower to, .60 (I think that was the figure), so as usual the stock gets punished. Raymond James still had '98 projected EPS of .83, which could be conservative. Apparently some of their contracts will not generate the revenues expected until after the next quarter (or two).
Acording to RJ thay have not lost any customers or accounts and RJ is still bullish on the stock.
The projected '97 PE is now 20 based on the current price of $12, but the projected '98 PE is about 14.4 with a projected growth rate of '97 - '98 of 38%. RJ had a 12 month target of $23 and a five year growth rate of 35%. I am bullish on this stock, and intend to add to what I have if it settles down tomorrow or friday. I believe the outsourcing business can only continue to grow, and with their long term relationships with companies like Hewlett Packard, Microsoft, Fed Ex, Poloroid, Sony, 3DO, Viacom, Electonic Arts etc, they seem to have a great clientel to build on. During the last six months, the Company has doubled its sales force and espanding rapidly overseas (now only about 15% of its total business).
All the above IMO only, please verify. Glad to see this thread as I hope this under-followed stock will be a winner. Would also appreciate any additional info out there.
Good trading
Harbor |
