Leasing Solutions (LSN) Message Board

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Technology Stocks : Leasing Solutions (LSN)

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To: Ming who wrote (27)	10/27/1998 8:50:00 AM
From: Eben Battaglia	Read Replies (1) of 33

Ming, I like your thought process. Let me throw this into the fray then. Using $2 billion sales less $1.4 billion in depreciation leaves $600 million for the 5 years. I'd use 22.5% for SG&A and interest or $450 million, leaving $150 million. Subtract 42% for taxes and that leaves $87 million or about $17.5 million per year or $1.75 per share for a 5 year average. I got my %'s from the last 10-K. In any event, even these figures would show that the company is undervalued at $10. If you can assume that equipment valuation is the only issue here then it would seem to be a good buy. Unfortunately, I have seen too many instances where the problem ultimately comes down to misbooked sales (which I am not implying in any way). Hopefully we'll all know soon exactly what the issues are here. The other problem that I can see is that management, by delaying the release of more information, has probably suffered seriously from a credibility standpoint. With thousands of stocks available for purchase many solid companies are passed over for just this reason. You may own shares in a fabulous company, but the stock price languishes for eternity. Who knows? Investors are very fickle. I hope this situation works out soon. Eben

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