[ Legato Systems: LGTO ]
One issue that is priced for perfection is Legato Systems (LGTO). It caught my attention as one of the high-flyers that can do no wrong. And experience has shown what can happen to such high-flyers. (AMES, CDRD and , ASYT and many others can attest to the unattractive reality). Actually, its price relative to its own growth rate implies a far better picture than perfect.
At $54.00, it is priced at exactly 100 times earnings, for a company that is expected to grow 49.8% for the next 6 quarters on a compounded basis. In addition, it would appear that its price currently is at a Technical barrier. Let's see if TA guidance holds at this point.
In addition, why are there so many insiders selling while the institutions are buying? Note that there is not one single buy in this year, and the selling accelerated just recently. Hope you can make out the details from the bundle of unorganized letters below:
144 6,595,634 170,600 11 - E,A,D,D,S,S,A,A,D,D,A 38.66 8/98
144 645,000 25,000 1 - O 25.80 7/98
S 2,914,390 67,000 2 - E,D 7/31/98 - 7/22/98 43.50 8/98
144 703,125 30,000 3 - A,A,D 23.44 6/98
144 2,513,000 82,600 4 - A,A,D,F 30.42 5/98
S 2,882,476 98,600 5 - E,V,O,D,F 5/29/98 - 5/05/98 29.23 6/98
S 906,250 25,000 1 - E 4/21/98 36.25 5/98
144 4,029,349 87,300 5 - E,A,A,D,F 46.16 2/98
S 3,200,640 67,300 4 - E,V,O,F 2/27/98 - 2/02/98 47.56 3/98
S 892,600 20,000 3 - E,O,F 1/30/98 - 1/27/98 44.63 2/98
Currently, Free-Edgar is not available so I cannot implement a ratio analysis on the quarterly inventories, receivables, and margins information.
RT |
