I just spent the last five hours or more researching this company after a friend pointed it out to me. I am impressed. I also agree with others on this board who said this stock may one day command a higher PE then the current PE as the story gets out.
This company is right in the middle of a great change in how machines are operated (not just computers). We will talk to washing machines, car radios, computers, and e-mail. Doctors, nurses, and lawyers will spend much less time on paper work and more time with their patients, or clients.
Bill Gates and Intel are eager to get this technology in everyday use, and now appears to be the actual dawning this new era as evidenced by LHSPF's sales and profits, not to mention all the major breakthroughs in continuous speech technology made in the last few months by the likes of IBM and Dragon.
Today LHSPF sells for just over $ 47.00 per share. Recently it has experienced a somewhat negative bias as it has fallen from about $ 52 per share. It appears to be holding at $ 45.00, but I'm wondering if that will hold. I will be keeping a close eye on this company, and feel prepared to buy when I feel it is the right time.
I expect the company to make .32 to .34 per share this quarter. Any more would be a nice surprise. I wouldn't guess higher than .39, but who knows. I would be disappointed with anything less than .31.
Equity per share is about $ 6.00
Current assets are $ 142 mil
Current liabilities are $ 27 mil
Very good balance sheet thanks to great stock offering of 1.7 mil new shares to the public (2/3 to Europe, deal closed about 9-24), and to the sale of 1.45 mil new shares to Microsoft (just over $ 31 per share. Deal closed Sept 16).
Before offering their appeared to be about 18.2 mil shares. Now their is about 21.35 mil shares (18.2 + 1.7+ 1.45). Microsoft also has the option to buy another 428,571 shares for $ 31 assuming depending on how the new Microsoft affilitation works out of LHSPF. In order for the options to be validated, however, LHSPF and MSFT must agree that the deal was beneficial to LHSPF. If not, only a proportional amount of warrants will be issued depending on the benefit received. The warrant deal should close by March 1998.
I believe there are some convertible debentures out. I'm not sure if they will add more shares or not. Does anyone know? I may call the CFO some time to find out.
Regards,
VALUESPEC |
