SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Specialty Teleconstructors, Inc. (XMIT) -- EXCITING!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Thean who wrote (415)10/2/1998 2:51:00 PM
From: 18acastra   of 418
 
Copy of a post from YAHOO board:

I have taken the time to actually read the entire 10K document from XMIT.

Some pretty scary stuff. I Don't have it in front of me right now so the figures I mention may be a little off.
1. Total net worth of $135 million of which $88 million is GOODWILL. More than 65% of the company's "book value" is an accounting aboration for the "excess" amount of money paid for the purchase of assets.
Net tangible book value is about $5.00 a share. Unless Management can show that earnings will be in excess of a "market rate for a $5.00 investment", the stock will gravitate towards the inherent value. That being $5.00
2 HERE IS THE BIG TEST. In order for this company to attain the adjusted per share earning of $0.50 -- (approx. 1997 annual amount) it must have additional sales of 20 million -- just to cover the increased costs of amortization of goodwill and the 2 million dollar increase in its selling and administartive overhead.

Sounds like mission impossible when management tells us business is slowing. Lets assume -by some miracle - the company earns .50
a share next year. Give it a very generous P/E ratio of 20 and you only get a $10.00 stock.

Suggest you longs slowly consider the above.

Just my opinion.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News