Waldron & Co. initiates coverage on C-Cube Microsystems, Inc.
Waldron & Co. Reiterates Its 'Buy' Rating On Shopping.Com; Initiates coverage on Datum Inc. and C-Cube Microsystems, Inc.
June 29, 1998 06:03 AM
IRVINE, Calif., June 29 /PRNewswire/ -- Waldron & Co., Inc., a full service brokerage and investment-banking firm, announced today that it has reiterated its 'Buy' rating on Shopping.com IBUY and initiated coverage with a 'Buy' rating on two other California-based companies, Datum Inc. DATM of Irvine and C-Cube Microsystems, Inc. CUBE of Milpitas.
Shopping.com is an online retailer offering over one-and-a-half million brand-name products via its web site direct to Internet shoppers. Shopping.com's direct vendor shipping system allows for low prices and fast delivery without maintaining physical inventory, warehouses or store locations, which would typically be required by a mass merchandiser. Waldron research analyst, Lynn Trepp, in her report on Shopping.com stated, "With its recent announcement of a new CEO, followed by its announcement of a promotional agreement with Yahoo!, the Company is positioned attractively, we believe, as a participant in the "massive" growth of business to be transacted over the Internet."
Datum Inc. designs, manufactures, and markets a wide variety of highly precise timing devices used to synchronize the flow of digitized voice, video and data transmissions over telecommunication networks. "In our view, Datum's stock price is driven by the near-term sequential quarterly outlook," said Allen N. Strand, Waldron research analyst in his report on Datum Inc. "After losing $0.15 per share in the March quarter, we estimate that profitability will be restored in the current quarter at $0.03 per share. By the December quarter, we project profits of $0.30 per share. We recommend purchase of Datum in growth accounts with a 12-month price target of $25."
C-Cube Microsystems Inc., is a provider of digital video compression solutions. C-Cube's DiviCom unit develops and integrates products and systems that enable the transmission of digital video, audio and data over a variety of networks including satellite, wireless, terrestrial, fiber and cable. Terrence L. McCrary, senior vice president of research at Waldron & Co., noted as key considerations in making an investment decision regarding C-Cube, a) the company's resurgent growth prospects through the long delayed ramp-up of DVD, now beginning to occur, b) its strong balance sheet, with working capital of over $220 million including nearly $190 million in cash, c) its high profit margins (20.4% operating margin and 13.1% net margin for 1997), and d) its compelling valuation (trading at just 14.3x earnings while its peers are trading at 21 to 22x earnings). "At that valuation, the stock would be trading at approximately $26, a gain of more that 50% from current levels."
Each of these proprietary reports may be obtained from Waldron & Co. by calling its toll-free number (800) 641-6942.
Waldron & Co., Inc., may be a market maker in the securities of the companies mentioned above, and may have a long or short position in these securities. The information about the companies mentioned above was excerpted from more exhaustive research reports on each company. While the information was obtained from sources believed to be reliable, no independent verification has been made nor has any guarantee been made or implied regarding its accuracy or completeness. A potential investor should obtain and consider each report in its entirely and gain independent information about each company before making an investment.
Founded in 1939, Waldron & Company Incorporated began as an independent investment-banking firm, dedicated to success through service. Today, the company offers a full spectrum of brokerage services, with offices in San Francisco; Irvine, California; Charleston, South Carolina; and Westport, Connecticut. Its services include corporate finance, institutional sales and trading, proprietary research and individual client services. The company's products include stocks, bonds, mutual funds and variable annuities.
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