Jim, a former 13er came up on my value scan. Here's my initial research:
TTN has been transforming itself from a defense communications company to an information systems company by making internal changes and by acquisitions. In 1997 TTN organized itself into five divisions; communications systems, software systems, information technologies, medical sterilization and food pasteurization, and emerging technologies and businesses. This year the Company has acquired DBA Systems Inc., for about $36 million in stock ,VisiCom, an information technology solutions firm for $25 million and Horizons Technology, a provider of systems and program management services, for $19 million.
Revs./Profits by division:
Communications systems 29%/$1,07
4Software systems10%/4,580
Information technologies51%/8,771
Medical sterilization/food pasteurization4%/189
Emerging technologies/businesses6%/-25
Of note:
In August 1998, TTN received a one-year, $7.5 million U.S. Navy contract for submarine radio communications equipment, with options for four years that could bring the total value to $74 million.
Earlier this year TTN won a contract to provide Y2k services for the state of Wisconsin.
In June 1998, TTN withdrew a planned IPO to spin off Linkabit Wireless due to market conditions.
Reported Earnings
Report Period...Year Ago EPS...Mean Estimate...Reported EPS...% Surprise
Jun98 Q2............0.05....................0.07.......................0.08.....................+14.0%
Mar98 Q1...........0.04....................0.07.......................0.06......................-14.0%
Dec97 Q4...........0.00....................0.10.......................0.09.......................-10.0%
Sep97 Q3.........-0.14.....................0.07.......................0.08.......................+14.0%
<Titan (TTN-NYSE)
by Joseph Charles (5 1/2 , August 11)
Buy. Has reached the critical mass needed to compete as a modern defense company. There are a series of catalysts that could drive the share price in the near term. They include spinning off minority interests to the public in its subsidiaries, winning large defense contracts, getting food-pasteurization orders for its Surebeam Systems, which kills E.Coli bacteria, or a pickup in orders for its commercial satellite-phone systems. As its commercial ventures are spun off we believe that it will attain a valuation similar to incubator/holding companies Thermo Electron and Safeguard Scientific. Therefore we are applying a forward P/E of 26 times our 1998 estimate, 35 cents a share, and establishing a six-month target price of $9.10. Our 18-month price target is $11.75, or 26 times our calendar 1999 earnings estimate of 45 cents.> |
