Jach,
I admire your enthusiasm, however IMO, a PE multiple of 35 might
be expecting too much. The company first and foremost has to
prove to the street that the earnings rebound is for real. This will take
several quarters of back to back growth, then they have to attract
a following, meaning analysts. This IMO should be complete by the
4 th quarter. At that time , being conservative or at least on scale
with the market, I would assign a PE of 20 to 22. So if the above
developes along those lines I would expect the stock to be 3.75
to 4.25. Now if they execute the business plan, earnings could double
in 99, so we might could see $6 to $7 by the end of next year. One
last note, there again IMO, CAYN could hold take over possibilities.
The industry will consolidate, so if CAYN cannot grow accordingly,
they become a target and I would expect management to keep this
as an option to the shareholders, big and small.
Henry
PS, Frank I feel much better today, thank you. |
