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Technology Stocks : Unisys: Computer Solutions and Services Worldwide -- Ignore unavailable to you. Want to Upgrade?

To: DJB who wrote (2484)	10/18/1999 12:57:00 AM
From: Greg Jung	Read Replies (2) \| Respond to of 2818

Its not what next quarter is relevant, but the next five years. UIS doesn't yet have a positive 5 year track record, it is flush with cash earnings, paying down debt (BTW financial management appears good), etc. Fine. And you think it deserves a PE of 25-30. OK but it won't get that PE for all months of the year, and it requires a generous perception to get it. "Being comfortable" with forward estimates is the latest lingo for, "don't beat up my stock" that lawyers can be comfortable with. Software services and mainframe software go together, the flood of spending has spent the year's budgets, 8% revenue growth is a modest goal but a goal, nonetheless. Are they bumping prices on current customers, prodding them to buy more, or are they acquiring new customers to get that growth? They have a slight negative momentum wrt federal contracts and this is not a growing sector (the fed), anyway. When GDP grows at 3-4% you expect your industry to maintain 8%? In any case whatever the growth will turn out to be you should expect ups and downs just due to granularity of the deal sizes. And another thing as I continue my ramblings, there are plenty of companies on NYSE with stronger past history of rev./earn growth that are trading below PE 10. Your boat is dockside until the tide again comes in.