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Microcap & Penny Stocks : Perle Systems - Who wants to talk? PERLF

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To: HeyRainier who wrote (170)2/12/1999 11:06:00 AM
From: 007  Read Replies (1) of 248
 
Thanks Rainier, but the problem remains one of trying to look forward by looking backwards.

<(Earnings retention rate) X (Profit margin) X (Total Asset Turnover) X (Financial
Leverage)

Do that, and you have your sustainable growth rate for the company.>

Is that all there is to it?
What are those numbers going to look like after the acquisition?
The recent acquisition has a positive affect on the value of this company and your model is not accounting for that. If there is a material change to the fundamentals, you need to adjust for future expectations, because the market most certainly does.

IMO, the only thing holding this stock at 3 is technical, and that is that there appears to be quite a bit of overhead supply. It will probably take a little while to get through 3 1/2.
OO7
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