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Non-Tech : NovaCare Employee Services (NASDAQ:NCES)

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To: Apakhabar who wrote (165)9/8/1998 4:37:00 PM
From: Todd D. Wiener  Read Replies (5) of 376
 
I think that even $20 for THQI would be very disappointing, considering I expected a year-end price of $35, only a few months ago. At some point, the stock will catch up to its deserved valuation. It just may happen later than sooner. But until THQI can give a clear indication of the 1999 lineup of titles, the market will remain concerned about earnings growth.

As far as NCES goes, I believe the short interest is negligible. In fact most interest in NCES is negligible, which is why it's trading down. I recommend aggressive accumulation of the stock at current levels. It's trading at about 10 times next year's cash flow. This is arguably cheaper than THQI, considering the less risky business of NCES. NCES should be able to achieve long-term growth of at least 35%, so the current valuation is an aberration.

Todd
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