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.
Strategies & Market Trends : NTST Netsmart Technologies, Inc.
NTST 18.35+0.9%Nov 7 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: GregS who wrote (186)11/15/1998 10:53:00 AM
From: Howard H Bouch  Read Replies (1) of 241
 
Based on the sales trend of the past 9 months it would not be impossible for the sales for the 3 months to be $4.2m. With the licencing revenue continuing to increase the % of cost of sales is decreasing. If the cost of sales falls to 60% it would leave a gross profit of $1.7m.
Selling and general expenses average about 25% of sales.(say $1.05m).
Interest although increasing will see the benefit of the reduced rates payable from 1st October 1998 and could cost $.13m in the current quarter. Assume R & D of $.15m.
Based on the above it should be possible to make a profit of between $350,000 and £400,000 in the current quarter as against $122,000 in the quarter to 30th Sept.
Based on the profits of $122,000 earnings per share were .04c. If $400,000 were earned this would equate to earnings per share of 0.13c and a yearly figure of 0.52c.
Setting aside Market makers tricks what p/e would you expect NTST to be on? Even on a p/e of 10 this would equate to $5.00 per share.

Just my two penny worth

Howard Bouch
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext