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Microcap & Penny Stocks : Columbia Capital Corporation-Computerized Banking (CLCK)
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To: Jeffrey L. Henken who wrote (855)11/30/1998 8:51:00 PM
From: joe joe  Read Replies (1) of 1020
 
Columbia Capital earned $ .14 per share for the first three quarters this year. At today's closing price, the price to earnings ratio is about 6 or 7:1. Their industry segment is between 20 and 40:1.

Why is Columbia trading at such a low multiple? I think it is because investor's think that they may lose all of the business BestBank gave them, and therefore, there will be no earnings.

Wrong! First of all, if they, Columbia Capital, do not continue with the portfolio that BestBank contracted them to handle, it will take six to nine months for a change over to a new clearing house, though which time Columbia Capital will be adding Platinum and Millennium and other accounts that I understand will deliver more revenue than was attributable to the BestBank portfolio.

Why would anyone think they would not continue to process transactions attributable to the original BestBank portfolio? After all they are Y2K compliant, competitive, and already are set up to do so without further cost to the new portfolio owner.

Just think what the per-share price will be if profits continue to rise, (each quarter of 1998 was better than the last), and the proper multiple is recognized.

Joe Joe
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