SI
SI
discoversearch

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 : Box Hill Systems
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: grozozo who wrote (104)1/9/1998 1:36:00 PM
From: Clam Clam  Read Replies (2) of 113
 
This was a classic example of a management that doesn't know how to handle the street. These guys should teach a class on how to make good news sound bad.

It is true that the ramp in fibre box is somewhat uncertain. They are basically saying the revenue estimates that currently exist are not conservative but they could make it if they have a good year. Why they felt the need to speculate on estimates now... with their stock basically discounting estimates far below existing estimates is just plain poor timing.

At least they made the quarter of $20mm revenues. Although the stock is quite cheap any way you slice it, it probably stays in its $9-$14 trading range for a while longer. After all, their core business is still in-tact and they have $5 per share in cash and they have the fiber box ramp as a kicker. Montgomery says they want to use a conservative price target of $15-16 while Salomon is using $26. The difference is that Salomon is using 1999 estimates for its target price and Montgomery is using 1998 (and Montgomery has lower estimates in '98). Doing the math, Montgomery's target implies the right multiple to use is 23x where Salomon says 24x. These multiples are roughly 1/2 the revenue growth rate the company has experience in 1998. If the core business falls apart than this stock probably goes down to single digits and sits there for the next year. However, there is no proof that it is happening. Dead money for a while now, especially with EMC down 7% today (amid the ADPT disaster).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News