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Microcap & Penny Stocks : Netrix Corp. (NTRX) -- Ignore unavailable to you. Want to Upgrade?

To: Vincent Vega who wrote (95)	1/15/2000 2:44:00 PM
From: Vincent Vega	Read Replies (3) \| Respond to of 162

Yet another bullish report was released on Thursday from Vik Grover at Kaufman Brothers. He expects a breakout 4th Quarter, and is again raising revenue and earnings estimates for both 2000 and 2001. Here is the summary: "Given what we believe will be a banner 4Q99, we estimate that stand-alone NTRX is poised to beat our prior revenue estimate of $10MM by $2-3MM. We estimate that the company?s breakeven point is roughly $12MM, so upside to our $10MM estimate appears to position the company to return to profitability in 4Q99. With a strong 4Q99, accelerating orders in the carrier marketplace, and anticipated new product rollouts within 60-90 days (this could be as soon as COMNET later this month in Washington, D.C.), we are raising the bar for NTRX. Our 4Q99 revenue and EPS estimates have been raised to $12.3MM and $0.02, respectively, from $10.1MM and a net loss per share of $0.07. Our 2000 estimates go to $93.4MM and $0.28 from $92.7MM and $0.23. Further, our 2001 revenue and EPS estimates go to $188.2MM and $0.98 from $177.6MM and $0.90. Against this backdrop, we continue to believe NTRX is poised for a major move in the capital markets. We anticipate that the company will close the gross valuation gap with its closest comparable, Clarent Corp. (CLRN $75 «), which is currently trading at a multiple on 2001 revenues of roughly 20x. We reiterate our STRONG BUY on NTRX and our price target of $42, which represents 9.4x 2001E revenues and 47x 2000E EPS of $0.98. Note that if NTRX were trading at the same multiple as CLRN on 2001E revenues, we estimate that its shares would currently be trading at roughly $89."