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Technology Stocks : Hummingbird Comm. (HUMC)

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To: Praxis who wrote (1352)3/12/1998 12:01:00 PM
From: Paul Loucks  Read Replies (2) of 2018
 
Follow-up on HUM acquiring JetForm

In a previous post, you wrote:

>I think document mgmt would be a nice fit(ie.Jetform), what do you
>think of this as a great fit for HUM?

It sure would be an interesting acquisition. The upside would be acquiring a company with a dominant share in a market (I think it is quoted as 60%). This would give them another "best-of-breed" product. As well, it would put to bed forever the "one-product" company argument.

On the downside, Jetform has a higher PE. Therefore unless HUM does a cash or cash+shares deal, we would see a dilution in EPS.

A couple of items that would require attention would be:
1) how clean is their balance sheet
2) what is the projected growth of their core business and
3) could Fred work his magic and improve the profit margins.

The last acquisition was announced the same day as the earnings were released. Just some food for thought.

Paul
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