Cognicase (COGI, T.COG) - Integrated IT Solutions Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cognicase (COGI, T.COG) - Integrated IT Solutions

COGI 4.550

+8.3%

Jul 18 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sally Gallagher who wrote (97)	3/11/1998 10:10:00 AM
From: md	Read Replies (1) of 843

Sally the reason for the declining ROE is the number of financings which the Company has undertaken over the last year. Last March they did a private placement of warrants for US$8.7 MM and then the IPO in October. This has inflated the Book Value of the Equity which you are using in your calculations and depressing your ROE figures. When looking at the numbers you should take into consideration what the future ROE looks like over the next 2-3 years. Going forward with some estimates ROE for fiscal 1998 would be 12.7% and 24.3% for fiscal 1999. These estimates would include what could be expected from the recent Hexagon and SHL acquisitions. If more acquisitions are consumated then a higher ROE could be expected. You have to give the company time to make acquisitions and utilize the proceeds from it's financing activities.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next