Good Morning Jatin
>>>is this a surprisingly new product or something that was anticipated?<<<
the following part of the recent press release says they have a new product...
MARIETTA, Ga.--(BUSINESS WIRE)--June 12, 1998--UniComp Inc.
NASDAQ:UCMP - news) today announced it has
started shipping INTO 2000 / COBOL, a new client/server Year 2000 toolset designed to analyze AS/400 applications written in COBOL/400 and automatically convert date fields to Year 2000 compliant formats.
so why did the market not react positivly to this news?
I conclude that initially the market did react well to the news, as buyers came in the morning.
The price closed weak again though, I believe due to general market weakness. Tech investors, were reluctant, all week, to buy/add to any tech stock due to the tech correction.
If the tech correction has finished, UCMP will rebound with the rest of the tech sector.
>>>Hope they will start having sustained bottom line growth<<<
They have been building their business through acquisitions....
Business Summary
UCMP provides information technology products and services to businesses located in Northern Ireland and the year 2000 conversion software to platform-migration and payment-processing systems to users worldwide. Revenues for the nine months ended 11/97 rose 73% to $40.1 million. Net income rose 19% to $1.6 million. Revenues reflect the result of acquisitions. Earnings suffered from a $1.1 million non-recurring compensation expense for stock options.
>>>Are you in it for long term or short term?
I trade the charts, more than the fundamentals...but a company with growth and good fundamentals is a determining factor in my trades.
207.95.154.130
The chart has support at 4
The 1 year trend is sideways, with the last month being down. Again, this due to their one time non-recurring charge, and general tech decline.
My target is 6 to 7, one month, very short term, as that will rebound UCMP back to it's trend line.
Longer term, your time frame, back to the 10 to 11 area.
When/If the company shows greater growth in revenues and earnings, the stock will at some point break through the 11 area of resistance.
Only the fundamentals will cause a breakout to occur.
Earnings Estimates & Recommendations
This Next This Next
Quarter Quarter Year Year
(May 98) (Aug 98) (Feb 99) (Feb 00)
Earnings
Estimates
Avg Estimate 0.05 0.08 0.34 0.40
# of Analysts 2 2 2 1
Low Estimate 0.05 0.07 0.30 0.40
High Estimate 0.06 0.09 0.38 0.40
Year Ago EPS 0.05 0.08 -0.01 0.34
EPS Growth 10.00 % 0.00 % 3500.00 % 17.65 %
Sue |
