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Technology Stocks : INSS - International Network Services -- Ignore unavailable to you. Want to Upgrade?

To: Trader Dave who wrote (276)	12/17/1997 10:19:00 PM
From: joemjo	Read Replies (1) \| Respond to of 446

TD, It looks like you and I are on the same wavelength. INSS has postioned itself so far as a "doesn't miss" company. They have been rewarded with high valuations b/c they are in the cross hairs of two major trends, outsourcing and networking. These investment themes are powerful. I too will be pleasantly surprised with $.11, neutral with $.10, dismayed at $.09, and ecstatic with $.12. The desire for $.11 is to maintain a 100% growth rate for fiscal 98 over 97. I really want $.48 this year as compared with $.24 last. I do not think they should trade at 100 PE but think with that growth, a 50 pe is attainable and sustainable. I would take the latest quarterly number, annualize it, and throw a multiple of 50 on it. 10 cents = $20 sh; 11 cents = $22; etc. With that thumbnail analsys if they can hit 15 cents in fiscal 98 4th quarter I have a 30 dollar stock. If constraints are hiring engineers b/c demand is stronger than supply, they can raise prices. Question for you. What offerings are they working on? I am more concerned that in the short term they will be forced to buyout a competitor to get the personnel and that will derail the near term. It would achieve faster revenue growth but with a blip on earnings and maybe stock dilution. Todd