QMS on the TSE is an underpriced CD rom manufacturer-duplicator and due to get recognition. This is a real company with revenue for '99 of between 80 to 100 million; earnings per share estimated about $0.60, fully diluted $0.36. Currently trades at $2.50 CDN, which is less than ten times estimated earnings. This is not a day trade, it is fairly thinly traded but at a p/e ratio of only 10 is worth $3.60 and for the type of ratios we see elsewhere then at a conservative 15, the price should be $5.40, and at a ratio of 20 would be worth $7.20.
Q/Media Services Corp -
3mo results
Q/Media Services Corp
QMS
Shares issued 7,919,704
1998-12-04 close $2.6
Friday Dec 4 1998
Mr. Robert Lawrie reports
Revenues for the three months ended Oct. 31, 1998 were $26.8-million
compared with $7.9-million for the three months ended Oct. 31, 1997, an
increase of 238 per cent. EBITDA were $3,060,000 compared with $943,000,
up 225 per cent. Net earnings were $1,614,000 compared with $588,000, an
increase of 175 per cent. Net earnings per share were 15 cents compared with
eight cents.
Both revenues and earnings were ahead of budget for the first quarter of fiscal
1999. The strong growth resulted from vigorous internal expansion combined with
Q/Media's acquisition program, which added two new operations in fiscal 1998.
Additional push came from strong demand for services at all facilities in addition to
several new customer wins.
One of the factors that is driving demand is Q/Media's continuing expansion of its
services, including increased CD ROM capacity. During the first quarter, the
company's two new CD ROM manufacturing facilities at Seattle and Austin went
into production and are ramping up capacity successfully.
As anticipated, gross margins were down marginally during the first quarter,
reflecting the addition of operations at Irvine, CA, acquired in July 1998 as well as
start-up operations of the new CD ROM facilities. Integration of the Irvine
operation is proceeding well and it is performing as expected. In addition, the two
new CD ROM facilities should be operating at optimal capacity in the second half
of this fiscal year, which should also improve overall profitability.
The outlook is for continued strong revenue and earnings growth in fiscal 1999.
As in previous years, the second quarter is expected to be somewhat softer than
the first quarter because of the holiday slowdown.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
Chart at; wwwa.canada-stockwatch.com
(Type in QMS in box)
SI Thread, unusually low on B.S.
Subject 7934
I am long this stock and obviously biased, check out the thread and news releases at CSW.
Later
Keith
PS. Great thread organization Osprey. |
