And another (as posted on Yahoo)
VIK GROVER January 8, 1999 KAUFMAN BROS., L.P.
Telecommunications 800 Third Avenue, 25th Floor
212-292-8123 New York, New York 10022
vgrover@kbro.com kbro.com
ABLE TELCOM HOLDING CORP. (ABTEª-$7 *)
RATING: BUY/BUY PRICE TARGET: $23
WE PREDICT 10 POINTS IN 10 WEEKS
We met with management of ABTE and project leaders of its transportation division last night. The rumors that the company is having problems with its NJ transportation project are misleading. The company is rapidly turning its business around and is poised to significantly strengthen its balance sheet, reinvigorate its management team and Board of Directors, revamp its sales and marketing efforts, eliminate overhead by rationalizing operations and consolidating redundant facilities, move into additional international markets, and announce strong 4Q98 (ended 10/31) results.
We anticipate that the good news will start flowing from ABTE's well, which has been dry for several months, this month. We think a new round of investors is currently moving into ABTE's common stock, driven by the understanding that the pieces to this complicated puzzle are finally coming together. Against this backdrop, we reiterate our "BUY/BUY" recommendation on ABTE. In our opinion, once the company unleashes a flurry of positive news events, investors will pay north of $18 per share, or 15x our FY99 (ends 10/31) EPS estimate of $1.18. Our long-term target remains $23, or 15x our FY00 EPS estimate of $1.53. |
