FDC : First Data Corp Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : FDC : First Data Corp

FDC 31.69

0.0%

Aug 5 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: FDHIII who wrote (121)	11/3/1997 12:55:00 AM
From: Uncle Mikey	Read Replies (1) of 323

I think I am going to do a little buying tomorrow. From what I can tell FDC's merchant processing business has been slower than expected. This is a primary source of revenue and they further talked down estimates for next year. Value Line has an estimated EPS in 1998 of 1.95. First Call is now 1.75. That's a big drop. But FC still estimates 5 year growth at 20%. Just a few months ago everyone was touting this stock as a premier way to play electronic commerce. They missed a Q by 2 cents and announced business is going to be a bit slow in the near term. Boom - everyone hates the stock! Are all of those statements about FDC being very well positioned in e commerce all of a sudden null and void? Don't think so. Sometimes the best times to buy a stock is when everyone hates it. From it's current 29 1/4 I wouldn't think there was much downside, but...... Here is an interesting link to an interesting site that gives, among other things, an anticipated price range based on past PE ranges, Cash flow etc. You will need to register by typing in "guest" for both your name and password - you may need to go back to the site's main page and find your way back to the "risk and reward" report for FDC the site is free until min-NOvemeber gdorian.com For those who don't follow back t the link, highlights are that, from 1992 - 1997 (current period excluded!) FDC traded in a PE range from 20.49 - 30, and a price/cash flow of 12 - 18. Based on this data FDC SHOULD, be expected to trade in a range between $41 and $59.50. The RR report is pretty one dimensional in that it ignores a lot of "story" information, but I think it makes a good case for FDC being undervalued at this point.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next