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.

Technology Stocks : MAPINFO: Any Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Elvis Jones who wrote (192)	12/11/1999 1:56:00 PM
From: Alan A. Hicks	Read Replies (1) \| Respond to of 225

My target is $100 in 20 months. Here's why: Even at $33 MAPS is selling at a capitalization less cash of just over 2x revenues. That is still a cheap valuation for a software company that has beaten estimates for nine straight quarters with the kind of growth momentum MAPS is developing. EPS growth last year was held back by a higher tax rate, which won?t be the case this year. Net income actually grew 81% last year. EPS could grow 70% this year as margin improvement heads from 8% to 20% over the next couple of years. Revenue growth is accelerating from telecom customers and a strong pipeline of large orders from their relationship with Oracle. Data sales are now 40% of revenues and represent recurring revenues giving better visibility to their growth. A series of new products aimed at the telecom and customer service applications are rolling out on a steady schedule. Cash generation was $1.40 per share last year. They are buying back shares every quarter. With the kind of quality revenue and earnings growth MAPS is already demonstrating, MAPS should sell for at least 5 * revenues. MAPS should do about $95 million in revenues this year and $120 million next year. That would give a market cap of $475 million 10 months out or $55 per share and $600 million 22 months out or nearly $100 per share. The kind of business intelligence software that MAPS provides will benefit from new investment spending unleashed as Y2K spending that had focused on Y2K compliance now can focus new investment projects. MAPS is positioned for growth for years to come.