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Gold/Mining/Energy : Fantom Technologies (TSE:FTM)

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To: Hawkeye who wrote (4)2/6/1998 1:36:00 AM
From: Hassan Lakhani  Read Replies (1) of 55
 
Here is a quick summary of the Investor's Digest article, from Brink, Hudson & Lefever (never heard of them, personally).

EPS is predicted to grow from 0.86 in 1997 to 1.15 in 1998 and 1.50 in 1999. 12 month target price is 16.00. Sales growth was only 6 per cent in the first quarter, but EPS increased by 62 per cent because of rising margins. The company only has two models, but has 5 per cent of the overall US vacuum market, and 14 per cent of the over $200 market. Sales of the new model are predicted to be about 25 million in fiscal 1998 and 60 million in fiscal 1999.

I guess the one main question that I have is, why do you think this stock has such a low PE ratio? I've seen stocks like this before that seem to be steadily growing and have low PE ratios, but there earnings levelled off. Do you think that FTM will be able to maintain its strong growth? Also, do you know which institutions hold shares in FTM (OK, I guess that's three questions). Thanks.

Hassan
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