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Technology Stocks : PCCG - Profitable, small float and goes Internet with IM.

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To: WISDOM MILES who wrote (4)2/10/1999 7:42:00 PM
From: WISDOM MILES  Read Replies (2) of 125
 
Fundamental Analysis on PCCG
FACTS:
1. PCCG stock
Stock Price $6 1/2
Fully diluted shares 3millions
outstading shares 2.71millions
float 1millions
2. PCCG operatin
1999 First QTR.
Revenue $27.793millions
Net Profit $518,000
3.Market Guide Data
Price/Earning Industry 28.09; Sector 47.73
Price/Sales Industry 3.72; Sector 10.28

Now lets do some math
1. Apply the smallest Price/Earning(Industry and Sector)28.09
Using 3million diluted shares , using First QTR net profit$518,000 x 4
for 1999

Fair price for PCCG=28.09x($518,000x4)/3million shares=$19.40

2.Apply the smallest Price/Sales(Industry and Sector)3.72

Using 3million diluted shares, using First QTR Revenue $27.793million x4=$111.17milions for 1999

Fair price=3.72x$111.17million/3million shares=$137.85

Conclusion: PCCG worths a price between $19.40 to $137.85

*Note: above discussion without consideraton of INTERNET
Now PCCG goes INTENET 123cdc.com
The valuation may even go higher.

Please correct me if anyone see an error.

*Insider trade as of 2/4/199
10/9/98 Rodda George acquied 2500shares
7/26/98 Rodda George bought 2500shares at $7
No inside selling

Short position as of 1/99
100 shares
That's a joke!

Thanks.

Best Regards,
Wisdom
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