CompuCom Systems & spin off ClientLink, Inc Message Board

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Technology Stocks : CompuCom Systems & spin off ClientLink, Inc

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To: robert miller who wrote ()	10/17/1997 11:25:00 PM
From: michael r potter	of 388

Lets pretend cmpc had no hardware sales business and is just valued as a computer services company growing at aprox. 30% with 1997 revs. of app. $240m est. and1998 revs. of est. $300m (which are all probable), what would the market cap be? If it were valued at $500m mkt cap, it would be trading at less than 2 times sales. Many other high tech 30% growers are valued at 2 to 5 times sales. A $ 500m mkt. cap would put a valuation of app. $10.00 per share on cmpc. Their reseller business 1.7B in sales with 10% margins is worth a lot more than zero. The market is still so focused on cmpc the reseller, they are not recognizing the $300m (1998est) 30% growth company with 36% gross margins within. They will and then they will pay up. I have owned cmpc , sfe ccsc , and other spinoffs for a very long time and I think the risk reward ratio for cmpc is favorable . Sfe, original cost basis app $3 recently added again at 30. Bought more cmpc this spring at 4 1/8 . Since sold to keep a semblence of balance. Hanging on to original. Whew, 1st posting on internet . Thanks to all others for insights re Sfe &spinoffs on SI. Michael Potter

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