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Technology Stocks : BOSA(Boston Acoustics)

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To: LouMan who wrote (3)1/16/1998 11:26:00 AM
From: Rob S.  Read Replies (2) of 34
 
I talked with the company CFO yesterday. She was very straightforward and open. Last quarter is usually the best quarter of the year due to Christmas sales but the momentum of the Gateway and other business should carry forward well into the Spring. Of course she wouldn't say what earnings were likely to be, but I think the 60c projection by the one analyst covering the stock is low - earnings are likely to come in at around 75c. Even at 60c, BOSA will turn in annual earnings of around $2.50!

How many stocks are trading at a P/E of 10x CURRENT earnings and are growing at an expected rate of around 50%/year?

The company seems to be agresively pursuing new business in addition to the Gateway stuff. I think that the name recognition, the new products, and the favorable market position should propel sales forward at a fast clip for the next few years if they continue to execute as they have been doing.

Too bad the company doesn't have a higher capitalization so that more institutions would become interested. With the market for small caps still in the dumps, the stock continues to be ignored despite the strong showing. This won't stay this way - all it will take is for some newsletters and analysts to start covering it for the stock to take off.

At this price who knows, maybe Compaq or Gateway will buy them up.
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