ABTX +600% Sales growth Agrobiotech Message Board

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Microcap & Penny Stocks : ABTX +600% Sales growth Agrobiotech

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To: coffee221 who wrote (2)	10/1/1996 9:19:00 AM
From: TC5187	of 119

Call Inv. relations for a copy of their business plan. they had expected to run these losses due to acquisition costs and related expenses through Dec96. Most companies use the BS approach of seperating these costs and calling them extraordinary items. ABTX doesn't as they are in acquisition mode and they have clearly expected these costs. I was impressed by how well they had thought out the acquisition process and costs and didn't overpromise like most IPO's. They've done exactly what they said they'd do. In a previous interview the Pres. said 1997 NI would be up to 5% of sales, rising to 19% afterwards when synergies are fully realized. On the $57MM or revenues they're expecting next year that equates to $.38/share which at a market P/E of 15 (way under where they should be with their growth rate), that gives them a mkt price of almost $6/shr next year. After that @ 19% NI, even with no sales growth, a P/E of 15 gives them a per share value of almost $22. I'm not trying to hype this thing, I have far too little to make it worth it, it just seems like we've found one of those Peter Lynch type firms. I'd love to hear if others have a different view, maybe I've missed something.

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