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Strategies & Market Trends : Nelson's Trail

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To: Nelson Chang who wrote (9)3/20/1998 5:06:00 PM
From: Jeff Bomchill  Read Replies (1) of 50
 
Well, you've partially answered my question on this board ... I wrote to your post on the TSR board.

The stock has been a weak performer of late (even before today, of course), but is has been up 60%+ this year so far.

I must disagree with your point about growth decelerating. Obviously, I don't know yet what earnings will look like for the quarter just ended, but here's what revenue and earnings for the prior five quarters looks like sequentially (EPS is split adjusted):

Q2 1997 (11/30/96): $.07 / $11.8MM rev
Q3 1997 (2/28/97): $.08 / $13.0MM rev
Q4 1997 (5/31/97): $.10 / $15.0MM rev
Q1 1998 (8/31/97): $.08 / $15.8MM rev
Q2 1998 (11/30/97): $.15 / $17.5MM rev

EPS exploded so much in Q2 that I can't really characterize growth as "decelerating." Nevertheless, congrats on your short today, and we'll see what the earnings look like hopefully next week.

Jeff (long in TSR since Jan 97)
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