Carnegie Group CGIX (READY FOR A MOVE?) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Carnegie Group CGIX (READY FOR A MOVE?)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Thomas who wrote (60)	6/12/1998 9:57:00 PM
From: Sethpop	Read Replies (2) of 110

Clearly, the single most undervalued infotech stock. Selling at under 0.4x revenues(after subtracting cash) CGIX is less than half the multiple of the next lowest stock among the 75 or so in the IT professional-service segment. Yet, the company's skills base (customer-service and decision-support apps) is among the highest in the segment. Based on recent actions taken by the Company (albeit somewhat slowly), CGIX should return to near/above historic earnings potential by 3Q98. Assuming CGIX can return to even a sizable fraction of its demonstrated earnings potential during the balance of the year (levels hit in late 1996 and early 1997) the stock, now languishing around $3.50/share could increase substantially (and 10-12 would not be an unreasonable peer valuation at all!!) Moreover, even at double the current level, it is a very prominent acquisition candidate in this acquisition-prone segment. The median price paid for all acquisitions in this segment since 1/897 is well over 1x revs and that includes many smaller, lower-value-added companies.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next