From II, insider selling
nsider Selling Doesn't Sway
Us from JetForm: Buy (3/25)
JetForm's (FORMF) insider selling activity picked up during last two weeks. From March 10 to March 19, insiders and large shareholders
sold 104,000 shares, including disposition of 51,000 shares by JetForm's CEO, John Kelly. Although insider selling is always a cause for concern, we believe that it does not negatively reflect on JetForm's future performance.
Based on conversations with other analysts and JetForm management, we
believe that recent insider selling represents an intermediate profit taking and does not signal any negative changes in the company's fundamentals. In our opinion, there's room for growth in FY '99, particularly with respect to JetForm's InTempo product. During FY '99, JetForm expects to sign a number of agreements with large clients regarding InTempo. Consequently, we believe that the company will deliver a stream of positive announcements and will register strong financial performance for the next three quarters.
We reiterate our Buy recommendation on JetForm with a price target of $24, or 29 times 1999 estimate of US$0.83 per share.
(Posted on March 25, 1998 with FORMF trading at $18) |
