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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: lee kramer who wrote (78151)	1/8/2000 1:27:00 PM
From: Gary Payton	Read Replies (2) \| Respond to of 120523

lol Lee. don't post here often, but since the theme of this thread is gems, I've got one for you and your shrink to mull over - IFCI. compared to several of its peers, like NOPT and DIGL, it would appear to have significant upside. I've included the highlights of a post on the IFCI thread, and was wondering if you all had some input into the prospects, both charting short-term, and also some longer term thinking as well. TIA, Gary. This stock has suffered in the past from the CEO's overpromising on the earnings. In my opinion, if the CEO had been conservative, this stock would have crossed 10 long ago. If the company had been losing money like most of those in the industry (and the CEO had guided analysts appropriately), the stock would likely have been valued on their growth in revenues. Its one of the curses of making a profit in this market. As one can see, the growth in revenues has been magnificent. One can extend the following graph to include revenues over $180 mill in 99 and likely in the range of $300 mill in 2000. quicken.com I believe the CEO also stated after last quarter's earnings that he would be more conservative in his estimates, so we are not expecting any more earnings misses. It should be stated that one of the reasons for the earnings miss was that the equipment division did not maintain the usual high margins (which were in the 50% range). The equipment division was purchased from an elderly gentleman (around 75 years old) by the name of Sapp who is almost entirely responsible for all insider sales (was not interested in waiting around for appreciation). It should also be stated that charges were taken last quarter to get rid of subs that were not contributing to the bottom line. It appeared they were setting up for a strong year 2000. We will see in a month or so where the CEO has indeed learned to underpromise and overdeliver. The number he gave out in the recent interview was 8 cents for the 4th quarter. At least it appears as though he has impressed the institutions - the block trades the last couple days have been quite impressive. Now that we are over 10, maybe we will attract still more institutions. By the way, IFCI's Aerocomm is currently bidding on a $100 mill contract to wire the New York Subways for cell phones