" Stock is moving nicely these days. With any market at all we should
see 50 soon" David R. Doerr.
Along these positive lines I'd like to mention that Merrill Lynch & Co. released a Bulletin today, March 5th on STERLING COMMERCE. Here are some of the highlights:
INVESTMENT HIGHLIGHTS:
Price objective, $54, 32x CY'98EPS of $1.70.
Acquisitions likely in '98, accretive impact.
FUNDAMENTAL HIGHLIGHTS:
Increased visibility EPS estimates, FY'98 $1.26, Fy'99 $1.6.
Enhanced outlook, strong recent 1Q results, international growth 35-40%, accretive, acquisitions likely.
Core network services robust, 35% growth, electronic commerce outsourcing contracts expected.
LTG growth=30%
The security analyst indicated that they expect 3-4 managed network services outsourcing contracts this year, ONE ANNOUNCEMENT IS IMMINENT.
They state: "We believe that this market of electronic commerce outsourcing is just beginning and we believe SE has the breadth and scope in its operations to handle these contracts cost effectively."
Also, "We believe the electronic commerce market is growing 29% CAGR, and projected to reach 7.2 billion by '01. These figures are for
business to businness electronic commerce market".
I have bought the April 30, April 45 March 45 call options and am considering a longer term option, possibly the July 40 calls.
However, IMHO this issue seems appropriate for the long term.
My concern is that the market may slide for the month of March and April with considerable reductions in the price of those options. But I am using only risk capital.
Best Wishes, |
