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Random amusings from AOL and a good post by TMF Keeler.
Subject: Did I hear correctly?
Date: Mon, Oct 6, 1997 00:52 EDT
From: TMF Keeler
Message-id: <19971006045200.AAA10386@ladder02.news.aol.com>
I could've sworn I heard TPRO management say they were comfortable with 1999 FY earnings estimate of $1.02 (June 99). However, since no one on this board has even mentioned this solid bullish information I'm left wondering "what did I hear?"
$1.02 for FY99 means TPRO is currently selling for about 6X earnings 2 years out. It puts the PEG (using a contrived baseline earnings of $0.16 which is 4X March quarter results FWIW) at about 0.25. Assign any PE you want to $1.02, I don't think a sane person would say "6" ;-) 20 PE puts the stock at $20.
Is this a one time deal? Does TPRO simply make this money and then 1/1/00 comes around (that's Jan. 1, 1980 of course LOL) and it never makes a dime? If so, what will they do...pay a big dividend?
I doubt it. I think Jenkins had a growth through acquisition strategy in place before they figured out they could make money on Y2K. What the windfall from Y2K will do to accelerate and increase the scope of Jenkins plans is something all longs should ponder. The cash that comes in from this glitch will allow TPRO to easily grow by buying all these small competitors. By 1/1/00 TPRO could be a national powerhouse in an industry that never had
such a thing and could probably use one.
So no dividend, but a backfilling of sorts. With the money and revenues TPRO brings in from Y2K they simply buy more companies so that the core business grows nearly as fast. When Y2K is a memory a solid company with much increased sales, earnings, and hopefully market cap will be left.
Merrill Lynch was on the conference call, along with many others. In fact, I was surprised at how many analysts were on there. Do you think any of them reached the above conclusions? We will find out soon enough.
Watch the calendar not the clock.
TMF Keeler
Patrick Keeler
A Fool and his money are soon partying
Subject: Re: Did I hear correctly?
Date: Mon, Oct 6, 1997 02:43 EDT
From: TokyoMex
Message-id: <19971006064301.CAA10304@ladder01.news.aol.com>
LOL Keeler,
Yes we heard 1.02 as well as .23 for 3rd qt 98, which by the way is only a few months away.
Why do you think some of us are so bloody bullish on this ??
Glad you've noticed.
Keep up the good work.
This just might out pace your beloved IOM !
Joe Topro
Bring Da Funk Bring Da Noise ....
Take The Train To 135 th St ........ |
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