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Technology Stocks : Hall Kinion (Haki) contracting agency

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To: Travis McGee who wrote (16)6/22/1998 2:34:00 PM
From: James Harold Alton  Read Replies (1) of 26
 
Preston, A "Z" trade is an out of market trade. A "T" trade would be an out of time trade etc.

I have been doing a little analysis on HAKI:

I have found three other companies that are in the same business and have been making some rough comparisons:

Company name: Current PE
KEA 61.27
DPRC 36.50
SYNT 61.1

Average of all PE's:.......52.9

HAKI announced that it's 2ndQ earnings would come in at .07 - 09 as compared to .12 which was estimated by analysts. If we annualize these numbers we get: .28 - .36/share which if applied to the average PE of other stocks in this group we get a range of $14.80 - $19.04. A more conservative PE of 30 would still put HAKI in the $8.40 - 10.80 range. Personally I doubled up today with the drop below $7 and might triple if we drop any further. It appears to me that there is a large seller trying to get out of HAKI due to the news as there are large blocks showing on the TL from time to time. I am betting that when this seller is done that we will see a return to a reasonable valuation level. Just my thoughts.

James
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