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Technology Stocks : Headway Corporate Resources - A Temporary Staffing Company -- Ignore unavailable to you. Want to Upgrade?

To: Jamessmith who wrote (22)	6/18/1998 3:42:00 PM
From: Pendretti	Respond to of 46

James, you obviously haven't look into it and your opinion stinks. I saw you mentioned the PE ratio of 44 or something like that. What are your expectations of the growth this company will show? In the research rapport of Nations Bank Montgomery calculates $ 0,48 for next year so the PE is around 24. And for a fast growing company that is low. And these numbers are without the acquisitions. You are talking of insider selling. I don't know if there is really insider selling here, but it is not big. Look at EGNS where you will also find inside selling in the news, but it is not. It is the exercise of warrants/options or putting stock in trust funds for the children. I know it for sure with EGNS. But if you look good at the company, you will find a filing 13A or something and that means someone takes a stake of 10% in the company. This happened with HDWY last weeks and guess who was buying it: White Rock (or George Soros if that name rings a bell). You will find in the news they already had a stake of 7% and now they increased it. And then there is the acquisition part of HDWY. With new acquisitions they will increase their revenues over $ 300 mln. and they made last year around $ 147 mln. and the year before that $ 96 mln. If this company continues to grow like they do it is only fair to pay a high PE. And now the big part. I heard that it is not allowed to short the stock because it is not yet approved. So, you can forget about that one. And this is also important. There is almost no institutional holding in this stock. When they start buying (and they did two weeks ago IMO, look at the volume that particular day) the price will go up quickly because major shareholders will not sell their shares. And why do you think the analysts are so positive about this company. Because they have a winning management who manages to grow so fast and keeps building shareholders value. And another point is the fact that this fast growing company will eventually become a take over target. And look at the chart. Isn't she a beauty. Going up on big volume and going down on almost no volume. I follow this stock a lot and last week the MM pushed the price down $ 1,- on 15.000 shares just to encourage people to sell because they have to get the shares if investors want to buy it. So, now give me you negative points if you have some. If you don't find them, think about it and buy it or else leave and never go back. IMO, the stock will go up on the acquisition(s) they will make because it will prove how fast they grow and how much it ads to EPS. Analysts will up their targets and later on the company will do a secundary and keep growing and eventually will be a take over target. This is my feeling what will happen. Rene.