" Traders should also be aware that State Street recently participated in a LOCK stock offering, and is reported to have a financial inncentive in keeping the stock above $3 per share."
To: +TechTrader (479 )
From: +Double D Tuesday, Feb 17 1998 9:27PM EST
Reply # of 481
Taken from Briefing.com.....
briefing.com
"SAF T LOCK (LOCK) 4 3/32 +9/32. Saf T Lock: A play on fundamentals. Has a funny ring to it doesn't it. But that is exactly what Howard N. Stillman of State Street Securities is pushing. This afternoon, Mr. Stillman (who is "a special situations analyst with over 25 years of experience and formerly director of research for two N.Y.S.E. member firms and has been approved as a supervisory analyst by the NYSE") initiated coverage of the maker of gun safety locks with a "strong buy" rating. But it's Mr. Stillman's price targets that really knock you off your feet. Over the next 12-24 months, he believes the stock could appreciate anywhere from $20 to $40 a share. An analyst forecasts upside of 377% to 855% and you would think that the stock would take off. Well this is Saf T Lock, and investors have simply been burned too many times. If only LOCK could find enough interest to push the stock up 15%-20%, it might have a chance, as the momentum guys takeover. Investors simply don't trade LOCK on fundamentals, no matter how provocative they may appear. But we'll share the numbers with you anyway. For fiscal years 1998 and 1998, Mr. Stillman sees earnings of $1.00 (P/E 4.09) and $1.50 (P/E 2.73). He expects a company which logged sales of only $115,000 for all of 1996 to post top-line figures of $60 million in 1998 and $90 million in 1999. It all sounds great, but there is know since being a hero on LOCK. Believe me, if the stock starts to take off, you will have plenty of time to get on board. For now, the best action would probably be to just put the symbol on your list of stocks to watch and wait to see if a momentum-driven rally begins to develop over the next day or two. Traders should also be aware that State Street recently participated in a LOCK stock offering, and is reported to have a financial inncentive in keeping the stock above $3 per share." |
