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Technology Stocks : NewKidCo International (OTC:NKCIF) (TSE:NKC) -- Ignore unavailable to you. Want to Upgrade?


To: Link Lady who wrote (1309)3/24/1998 10:49:00 AM
From: esecurities(tm)  Respond to of 4231
 
>>I was directed to this link re: Growth Flow

We referred to Growth Flow and R&D in post 983, Jan 6th re: SWEBF financials for 9 months ending 30 Sep '97--
Message 3108373

This is an important indicator, however, as we pointed out R&D was decreasing as of q3, ref/...

>>R&D: ~$2.848M or 16% of sales (Q3 R&D at $671k
>>v. Q3 '96 at $1.5M, a 55% decrease (-55%) q3-q3).

Growth Flow for SoftQuad (estimated for fy '97):

R&D fy 97: $C 3.4M(e); $US 2.4(e)
earnings: n/a
shs: 13.1M
price: $US .63

G-F= (price/((net income+2.4)/13.1M)) =.63/.18=~3.5

Murphy suggests a G-F of 10<x<14 a stock is fairly priced. If <2 he suggests 'mortgaging the ranch'...

3.5 appears to be a good number, however, one must consider R&D trends and profitability. R&D is decreasing (Q3-Q3) and SoftQuad is not profitable.