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Technology Stocks : Enterprise Applications Integration: An Explosive Market

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To: D. K. G. who wrote (9)12/1/1998 11:58:00 AM
From: D. K. G.  Read Replies (1) of 28
 
Interlinq - INLQ a possible EAI play to consider in the future ?

techstocks.com

Nov 19, 1998

Interlinq

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Bill Chidester of Elite Micro Stocks (914-276-6537) provides the following stock idea on Interlinq (INLQ 6 1/4). Below is the write up.

Interlinq Software is primarily a provider of software for financial institutions. Their software is mainly used to process mortgages. "The mortgage industry is gravitating away from mainframe solutions to network type solutions," says Bill Chidester of Elite Micro Stocks. "Interlinq's software uses client-server-based technology that enables companies to reduce their technology costs per loan per year on an annual basis."

Interlinq recently acquired Logical Software Solutions and that company's award-winning Flo-Man enterprise-application integration software. The new software offers the potential for Interlinq to vastly expand the range of industries it serves.

Interlinq is also integrating certain parts of the acquired software into their existing software to give them an even greater edge within the mortgage processing industry. Interlinq recently signed an agreement with Security National Servicing Corporation, one of the fastest growing managers of distressed mortgage loans in the country.

Bill thinks their stock will easily double....

Interlinq appears to be in good financial shape. They just reported 1st quarter earnings of $0.13 versus estimates of $0.09 and previous year earnings of $0.04 per share. They also approved the repurchase of up to 500,000 shares of their common stock, or about 9 percent of the shares outstanding. "Revenues were up 59% in the most recent quarter... They have no debt and their PE multiple is low for a fast growing software company," says Bill.

Bill notes that with low interest rates, a strong housing market and inflation under control, the overall environment is favorable for Interlinq. He estimates they will earn between $0.55 to $0.60 for fiscal year ending June 1999 and $0.70 to $0.75 in fiscal 2000. Bill thinks their stock will easily double and possibly triple in the next 12 to 18 months.
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