AFCI - I have sent a very detailed message to AFCI's investor relations dept. in hopes of receiving some very detailed answers as to the forward looking questions that I posed.
My research leads me to believing that the issues recent price stagnation below $12 primarily is attributed to a management shakeout that has left them with no true leadership, and a questionable business plan....yet they continue to make strides in the form of solid contracts and an increasing presence. This question I addressed specifically as I believe that the assignment of a new CEO will put this issue in a much more favorable light.
AFCI's earnings have steadily decreased while their revenues continue to increase. This is, by no means, an exception to fast growing companies. Take a look at the revenues, by year, below:
AFC Revenues (last 4 years):
1997 $ 267,858,000
1996 $ 130,193,000
1995 $ 54,287,000
1994 $ 18,802,000
They are doing something right and their equipment and contracts are top notch. The last factor that has weighed on the stock price is the fact that Merril dumped nearly 700,000 shares in 98. I have heard, however, that they still have a $15 price target. All this could change with a new CEO, solid business plan, and some good quarterly numbers in Jan. of 1999.
I will reserve my last thought until I receive the response to my inquiries.
Good night all. S&P Futures fading a bit from earlier levels.
TJ |
