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Microcap & Penny Stocks : Pen Intercom (PENC) - Ready to fly?

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To: 2MAR$ who wrote (60)4/27/1999 2:08:00 PM
From: Chris Helton  Read Replies (1) of 107
 
Company appears to be focusing on circuit board manufacturing while it waits for Transdigital to get their contracts. Valuing the company only on its circuit board manufacturing should produce a $.20-25/sh eps run rate by the end of this year. That's using a $36 million sales run rate and a 4% after tax profit margin. These seem conservative estimates. That would imply at least a $2-2.5/sh stock price using a 10X eps multiple.
If they get the Transdigital merger with their related contracts, the sales rate goes to over $80 million (assume $50 million of orders) and the stock is worth a lot more. With the stock less than $1 it seems a pretty good reward ratio. good luck investing.
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