Someone's Gonna Be Real Pissed,
ATMI, just having sold 4.72 million shares at $29.50 on March 31,
has just delivered at $54 million dollar loss, total, to whoever
participated in the secondary offering (4.72 X 29.50-18).
Stock seems pretty cheap here. With downgrade, Needham projects
earnings at $.90 for 1998, and $1.44 for 1999. That would put
1998 PE at 20 ($18/.90), and 1999 forward PE of only 12.5 (18/1.44).
Hope I didn't catch a falling knife here. Picked up 2800 shares
at $18. At that price that's a 39% discount off the price of
the secondary offering. Also looking back over price history of
last year and a half, absolute low was $15 3/4 (4/4/97), or
another possible -12.5% from $18. And at a forward 1999 PE of
only 12.5 doesn't seem like stock should fall much further.
IMHO, stock should sell at least at forward PE of 15, which at
1.44 would be $21.50, or upside of 19.5%. Good luck to all. |
