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Technology Stocks : PC Connection, Inc. (PCCC)

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To: Chris Swain who wrote (67)12/24/1998 2:17:00 PM
From: Ginko  Read Replies (1) of 180
 
Analysis of PCCC:

Current Price = 22.25
PE = 20 (based on FY99 EPS of 1.10)
Float = 3.5MM shares
Annual Sales = $1 Billion

1. EPS - FY98 = .95, FY99=1.10 <15% growth rate>. Five-Yr earnings growth = 30% vs. 23.8% for industry
2. PE - Forward PE is now 20, fairly valued
3. Small float means good chance for volatility to the upside
4. NO Longterm debt - Cash = $11MM
5. Only one analyst follows it - currently with a Hold Rating. Means room for upgrades and more institutional following
6. Insider Buying - While purchases were at near lows for year ($10), this is usually a bullish sign for coming 12 months.
7. Recent IPO - Not on everyones radar screens yet
8. Strong CEO - Recipient of 1998 Entreprenueur of the Year by Ernst & Young
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