Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: RFH who wrote (7676)	6/11/1999 9:05:00 AM
From: JZGalt	Respond to of 18928

Fox and Robert, Other than the chart, why would you want to own this stock (IUSAA)? Take a look at the SEC filings and I see more than a few red flags here. The SG&A expenses appear to have moved up and now inching down, management is turning over as a result of a series of acquisitions. Sales are relatively flat. Distribution of material appears to be via CD-Rom and I don't see any provision for distributing data via the internet only plans for DVD media later. This is particularly disturbing. "To the extent that data processing sales constitute a greater percentage of net sales, the Company expects database and production costs to increase as a percentage of net sales." Wow! Most companies I deal with, the productions costs decrease as sales volume rise. Class A common stock: 24,228,831 Class B common stock: 23,907,919 Shareholder equity $90,435,000. Assuming A and B are same other than voting rights, then Book Value is less than $2.00 per share. Market capitalization is $265 million on sales of $220 million, so P/Sales numbers aren't out of whack. It is your money, but I think there are plenty of companies out there with more promising outlooks. Just an opinion. ---- Dave

To: RFH who wrote (7676)	6/11/1999 9:16:00 AM
From: JZGalt	Read Replies (2) \| Respond to of 18928

Robert, if you want a low priced stock look at AMKR. One of the largest test and assembly outsource companies in the world for semiconductors. Amkor serves more than 150 customers, including Advanced Micro Devices, Cirrus Logic, Hewlett- Packard, IBM, Intel, Motorola, Texas Instruments, and Toshiba. Sales last year were 1.6 Billion dollars. confirmatoryanalysis.com P/Book = 1.72 P/Sales = 0.59 P/Earnings(TTM) = 10.88 P/Earnings(next 12 months projected = 9.2 John Neff (director) bought 5,000 shares at 9.63 New directors often do this, but John Neff is an imposing figure in stock market history as the original value oriented manager of the Windsor Fund in the late 1980's and early 1990's. His Barrons interviews in the late 1989 and early 1990 period got me into what is now Citigroup at an average $3 and $4 per share. Today Citigroup sells for over $40. 10X in 10 years isn't bad. Back to AMKR... Let's do the math. 80 cents in earnings over next 12 months. Growth projections over next 5 years > 23% therefore the stock should sell for a p/e of around 20 and the price should move toward $16 without too much effort. The current price is less than $8 so it should be a double in 12-18 months as semiconductor cycle gets rolling in later half of 1999. The recent earnings cut was AMKR spending now to increase capacity in their newest facilities for the expected requirements. Spending prudently now, to reap the benefit when capacity tightens later is smart business even if analysts don't like it now. I suspect we might see another drop in the stock when the actual earnings come out for Q2, but that should be the absolute bottom for this stock in this cycle. You do like stocks that go down then up right? I own some at $6 and $10 3/8. This is one stock where Mr. BuyandHold is behind anyone AIMing it, but the last chapter isn't written yet. <grin> ---- Dave PS, this is one stock where you might be able to trade it every two weeks and make a bundle AIMing it. It moves between $7 and $10 quite easily on any good or bad news.