[ PERLF ]
Scott and Trackman:
Thank you. I stand corrected. I am digging through the balance sheets from the annual reports:
The 1997 Annual Report (You will need Adobe Acrobat):
perle.com
The 1996 Annual Report:
perle.com
Also, I was wondering if you have a copy of Michale Murphy's book, Every Investor's Guide to High-Tech Stocks & Mutual Funds.There are some interesting valuation methods he presents there, in particular, the price-to-growth flow ratio. A fair P/GF ratio, which includes the R&D expenditures of a company, is from 10x to 14x.
If you have a copy, please look at PERLF's P/GF ratio, and tell me if you are getting a P/GF ratio in the vicinity of 2 - 3 that I briefly calculated for Perle (I don't know the currency translation from Canadian Dollars to US Dollars, but I just divided the R&D figure by 1.2--correct me if this number is too small).
From the text:
"...Anything under 8x starts to get our attention, and under 5x we really get interested. The P/GF ratio can get astonishingly low--e.g., under 2x. That's when we mortgage the ranch!"
As I don't have a ranch to mortgage, I can't quite do what he suggests.
This is a very interesting company and situation we have here. I will call the company up again for a 3rd conversation. My notes from that and the previous conversations will follow.
Regards,
Rainier |
