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Technology Stocks : American Access Technologies AATK

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To: CMon who wrote (16)5/12/1999 1:44:00 PM
From: Alex Chun  Read Replies (3) of 104
 
See biz.yahoo.com for more on AATK earnings. AATK expects to double net income quarter-to-quarter for the next two quarters, and to TRIPLE revenues for the year! If they hit their target of $13 MM in revenues, AATK will have a Price/Sales ratio of 0.49 at a stock price of $21.

Also, note that they are looking for earnings (after charges!) of $1/sh for 1999.

Bottom line: with a company growing this quickly, it doesn't make sense to simply annualize the latest quarter's results.

I have held a small position in AATK since 4/98, and it looks like my ship may be coming in. I'm considering adding to my position.

-Alex


> Why would you call those "earnings terrific"? Annualize that
> top line and you get a $5MM revenue number. Using their 3.3MM
> share count and the current $21/shr price, you get a
> $70MM market cap.

> Explain to me why this business, which generated an operating
> loss last year, is worth >14x sales.
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