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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: SirRealist who wrote (93948)	4/6/2000 4:03:00 PM
From: marquis103	Respond to of 108040

IFCI. From Briefing.Com. Story Stocks this morning. $41 price target. Nice. Russ International Fibercom (IFCI) 21 11/16 +1 15/16: The recent sell-off created real value in a number of technology names, including International Fibercom... In fact, at current levels IFCI is our favorite play within the hot fiber-optic industry... Leaders JDS/Uniphase (JDSU),Corning (GLW) and SDL (SDLI) are all very attractive long-term plays but lack the compelling valuations of IFCI... Breaking down the numbers, we see that IFCI trades at 39x estimated FY00 earnings of $0.55 and 27x FY01 projected results of $0.81 - well below the average industry multiple... Even more interesting is the fact that IFCI is projected to post average annual growth of 60% over the next 5 years, which results in deeply discounted PEGs (p/e to growth) of 0.61 and 0.45, respectively... Typically companies experiencing the type of growth projected for IFCI sport PEGs of well over 2.00... Now IFCI's recent history of earnings trouble helps to explain the discounted multiples, but the company appears to have put its problems behind it as evidenced by recent earnings results... Several major contract wins also bode well for the company... So while IFCI might not achieve the same multiples as some of its competitors that haven't missed their earnings numbers (in recent past), Briefing.com contends that stock deserves a PEG of at least 1.25... Multiplying 1.25 by 60 you get a p/e of 75x... In other words, if IFCI continues to deliver on its expectations, the stock should have little trouble rising to the 41 area over the next 6- to 12-months... Traders should note that IFCI is a small cap stock with relatively modest revenues... Consequently, risks are higher as loss of any clients will have larger impact on IFCI than on bigger player like GLW... But as long as they continue to execute like the have in recent months, stock poised for significant appreciation.RW