OBJECT DESIGN Inc.: Bargain of the year!! Message Board

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Technology Stocks : OBJECT DESIGN Inc.: Bargain of the year!!

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To: GUSTAVE JAEGER who wrote (2159)	7/18/1998 11:56:00 PM
From: hasbeen101	Read Replies (2) of 3194

I was a bit curious about the 4 cents per share net income (allowing for all dilution). My rough mental arithmetic told it it was closer to 3. I just did the calculation, and it was 3.53 cents. So the rounding error this time around was about as flattering as it can get. If the company could just cruise steadily at this level (which I don't think anybody believes is a realistic scenario; the market is too turbulent for that) the company would have net income of 14 cents a year which puts it on a P/E of 50 at $7. Sure, on one hand the tax losses will run out some time, but on the other hand nobody can deny that the historical trend growth for ODIS is at least 25%. The valuation is not too stretched at this level in my opinion. But I do agree with ahhaha that it's impossible to be certain that the next quarter will be as good as Q2 (although I expect it will be better) so I expect quite a lot of volatility this quarter.

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