From STOCKTALK NEWS today
stocktalknews.com
Thursday, February 25, 1999
This weeks top picks:
Early in January, I put Stock Talk's first buy rating out on a little company that was trading around $2. The stock soared to $8.75, before settling out around $5. Since that time, we have been carefully watching the company to see how they would react to a market cap in excess of $200,000,000 (in July of last year it was a meager $18 million). Here is our full report:
Carnegie International (CAGI) – We first looked at CAGI last year at $0.42 and since then, we have watched the company launch their MAVIS product world wide, domestically with ALLTELL, and grow via acquisitions. Today, after a lengthy conference call with the Chairman David Gable, I got a good idea of where the company is headed. With the acquisition of PCNET, the company has made its first step to becoming a very real and dominant force in both the telephony market and the internet market. Revenues have exploded, crossing over the $100,000,000 mark several months earlier than I anticipated, and net assets have increased dramatically, nearing $50,000,000 at present time. The real question here though, is where do we see the company going? For my part, I see no problem with increased revenue growth continuing for the next several quarters. If I had to make a guess and put a number on it, I would have to say we are looking at $250,000,000 - $375,000,000 in revenues by December of 1999 or January of 2000. I feel that the lion's share of these increased numbers are going to come from continued acquisitions, BUT, I also feel that MAVIS sales are going to be stronger than most people expect, AND, I believe the ROMNET division is going to hit some big numbers this year or early next, as well. This company has grown in leaps and bounds, and has proven more people wrong than I would care to count. A few years ago I watched a little company spring up in Austin Texas that had the same kinds of growth numbers, and for the most part still does, DELL computers. Small companies can turn into large ones, I've seen it happen. Right now, my money is on this one. We continue to hold our STRONG BUY rating on this stock. Short term numbers on this stock: $9- $14 in one month. Long term: I have had to adjust my numbers upwards so many times that I am not going to publish them this time. Check the web site in a few weeks and I'll try to have something in the updates section. To view the latest press relases from CAGI click on one of the following links: (Feb.16) (Feb.17) (Feb.25)
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