Some references from the latest issue of Worth, on page 115-16, an article on Redchip REview.
Some 4000 readers (I saw in another article claimed 10K???)
Each company gets a grade from A to D. What's Ampex's rating, those of you who've posted here excerpts from RCR?
Follows the 20 rule: 20% insider ownership, less than 20% institutional, 20% return on equity(AXC's is negative so doesn't compute), 20% eps growth for last 3 years and forecast 20% for NEXT two years, 20% discount to pe ratio of Wilshire 5000 for A companies. Talks of Iomega.
"Those kinds of #'s have started to earn a following among the big fish on Wall Street. Michael Metz, chief investment strategist at Oppenheimer, raves about the publication: "The best service of its kind. Imaginative, professional, clear, comprehensive- I GET IDEAS FROM IT ALL THE TIME." Metz says he bought 2 tech stocks, INTE and SBEI after first learning about them from RCR.
To appreciate the value to individuals...understand its place in the investment data food chain. By staying tightly focused on tiny companies far outside Wall Street's orbit... lets investors get in on promising co's long before big brokerage houses start following the stocks and recommending them to their clients.
The review's model portfolio (I'm guessing AXC is on this one) hasn't done nearly as well, however, losing 4% in 96. Robins is the first to admit while each co's letter grade is based on (the aforementioned) 5 numerical tests, he weights the "squish factors"- personal judgement on management, position in the marketplace, and how compelling the co's "story" is- more heavily in putting together the model portfolio. "The model is for someone who's expecting SOME COMPANIES TO GROW TENFOLD OVER THE NEXT THREE YEARS."
Mark Hulbert notes "It's covering co's ignored by Wall Street, & in a sector that shows a lot of promise."
Wish there'd been a mention of AXC.
Was doing some historical comparisons of computer related companies last nite with AXC's future growth projections of mine, and the closest I could come to was..... Cisco systems 6 year profit run from 90 to 95 when profits rose from 14M to 480M and its market cap rose from a range of 257M-600M in 90 to the 9Billion to 24Billion range in the year 95. This is about what I figure AXC could do in 6 years, going from 96's 13M to ~500M in 2001 with 100% KM market share @$1/platter. That market cap for Cisco in 95 with $480M profits translates into AXC prices of $176 to $486 at the range of Cisco prices, divided by 50M AXC shares.
Will do more tables days later when I've got more time, but if it can zoom eps as fast and hi as Cisco, we really could be staring $500 AXC share price in the face 5 years from now. Keep waiting, and don't get scared, or greeded out of this stock! |
