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Technology Stocks : AremisSoft Corporation (AREM) -- Ignore unavailable to you. Want to Upgrade?

To: faqsnlojiks who wrote (55)	9/8/1999 11:51:00 PM
From: Vincent Vega	Read Replies (2) \| Respond to of 683

You're late to the party? I finally initiated a position today after watching this one for awhile. Bought some in the 13's and some at 14 7/8 (ouch). Here's why I love AREM at these levels: FY96-FY97 Revenue growth = 23.1% FY97-FY98 Revenue growth = 24.2% 1Q98-1Q99 Revenue growth = 29.9% 2Q98-2Q99 Revenue growth = 36.1% FY98 EPS = 0.35 FY99 EPS = 0.78 (Estimate) FY00 EPS = 0.95 (Estimate) Considering how well AREM has been growing revenues and EPS, I would not be surprised to see analysts increase their 2000 EPS estimate. Valuing the stock at 25x FY00 estimates yields a stock price of 23.75. Valuing it at the conservative EPS growth rate of 0.95/0.78 = 21.8% yields a stock price of 20.70. Either way, AREM is undervalued at current levels. I see some big things in AREM's future, and the current valuation of 13.8x forward earnings makes the stock look very attractive. Regards, VV