Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Command Systems, Inc. (CMND) -- Ignore unavailable to you. Want to Upgrade?

To: Rich Dee who wrote (105)	4/7/1998 4:10:00 PM
From: Rollcast...	Read Replies (1) \| Respond to of 1956

I suspect CMND will begin making announcements shortly after Volpe begins coverage, if they have'nt initiated already. Let's hope the overall market cooperates. thx

To: Rich Dee who wrote (105)	4/7/1998 7:19:00 PM
From: Superhawk	Read Replies (3) \| Respond to of 1956

I think Cowan is being ultra conservative, first in ascribing a $0.61 EPS for CMND in FY 1999, and second in assigning a target stock price of a crummy $24.00 a share based on a P/E of 40. If you accept that CMND is a "mini" offshore Y2K body shop in the mold of CBSL, IMRS, and SYNT, the future is much brighter, I assert. Comparing the four (figures are $M unless otherwise noted): CBSL IMRS SYNT CMND Price (7 APR) $37.75 36.81 47.12 16.12 EPS (last FY) $0.35 0.52 0.39 0.06 P/E 108 71 121 269 P/S 6.6 7.6 9.9 2.7 # shares (M) 21.6 17.0 25.4 4.3 Mkt Cap ($M) 815 633 1,199 69 Sales (FY97) 123.8 83.5 124.3 25.1 Cash 54.6 64.0 22.3 20.0* Curr Asst's 79.2 105.1 51.4 25.0* Curr Liab's 12.4 15.5 18.6 4.9 LTD -0- 0.9 -0- -0- Stkhldr's Equity 75.2 108.0 36.0 29.9* * Adjusted following IPO sale of expected 2.1M shares at $11.00 a share. Actual offering was 2.7M at $12.00, thus balance sheet is fatter than shown for CMND. As is evident, all four companies have enviable balance sheets -- little or no long-term debt, lots of cash, excellent asset-to-liability ratios, etc. There were some surprises for me. For example, I had no idea SYNT's market capitalization was so high in relation to IMRS's, and that its price-to-sales was 50% higher than CBSL's. I was also happy to note the cheap valuations of CMND in terms of P/S and market cap; i.e., it has a long way to grow. Will it grow? Well, recent year-over-year revenue growth from FY 94 through FY 97 shows annual growth rates of 33%, 38%, and 47%, respectively. In other words, sales growth rates are accelerating. This compares to growth rates for the other three companies, FY96 to FY 97 of: CBSL, 33%; IMRS, 200%; and SYNT, 35%. Thus it's in the ballpark with two of the big three. With growth rates accelerating, balance sheet solid, a long and outstanding client list, a successful offshore business model to follow, positive EPS, & cheap P/S and market cap valuations, I think CMND has a long, long way to run. Considering all of the above, I find Cowan's projections of EPS and stock-price target in FY99 to be excessively conservative. With the numbers above as a starting point, I'd be interested in reading FY98 and FY99 estimates from thread participants on sales, EPS, and especially stock price.