Firstwave Technologies, Inc. (FSTW) Message Board

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Technology Stocks : Firstwave Technologies, Inc. (FSTW)

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To: Roger A. Babb who wrote (17)	11/24/1997 11:44:00 PM
From: Paul Schmidt	Read Replies (1) of 1205

Roger, wow for the $15 range BROC had better get its butt in gear. One quarter of increased revenue is not enough for me. I look for two kinds of small company stocks: (1) One that shows strong revenue growth over the past year, somewhere in the 30-50% growth range and that is currently trading at a max P/S(TTM) of 3, has at least 15 million in cash and little or preferebly no long-term debt. It would also be nice if earnings were growing at that rate but earnings will usually catch up if the revenue keeps the pace and margins don't fall(doh! :) BROC's P/S may be just over 1.2 something but revenue has been on a steady decrease for the past three years. Good examples of these kinds of stocks are PPD(was a bargain at $12 this time last year not so much anymore), INVX and QLIX(personally I think QLIX is way undervalued). When I first bought into PPD last year it had been experiencing a very robust increase in revenue over the previous two years and was selling just under $12 a share -- that was a great bargain. INVX was another jewel, it is a little beaten down right now but no way would I sell my INVX shares. 3 years ago neither PPD or INVX were making a lot of money, not much more than 30 million a year but then both made huge leaps the following year and haven't looked back since then. (2) Beaten down stocks that have experienced temporary revenue slowdown but are cash rich and debt free so they can pump lots of money into R&D, perhaps aquisitions or stock buybacks. Good examples right now are RATL, SIII, PAIR(revenue is back up) and FORE. These kinds of companies almost ALWAYS recover in the long-term. I would buy any of the aforementioned stocks long before BROC. For BROC to hit the $15 range they had better start experiencing many consequtive quarters of revenue growth in the 30-50% range and get back to making 30 million a year like they did back in '94 and not retreat. They have not proven to me that they can do this but since I have the utmost respect for you and have learned so much about shorting stocks on your other thread I will keep tuned tuned to the future prospects of BROC. :) Good luck to ya. Will be keeping an eye on NetGain.

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