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.

Gold/Mining/Energy : GEAC.....Canadian best kept secret -- Ignore unavailable to you. Want to Upgrade?

To: robnhood who wrote (384)	7/10/1998 7:58:00 PM
From: robnhood	Respond to of 1571

I see I know when to leave my children unattended, <g>... same market as when I left at 12.30...

To: robnhood who wrote (384)	7/10/1998 8:57:00 PM
From: make.it.co	Read Replies (1) \| Respond to of 1571

if levesque hasn't adjusted their target for geac i suspect they will do so soon. using a multiple of 25 is awfully high for a company expecting little internal growth. i'm betting that geac mgmt assumed they had tax writeoffs when they forecast little growth in the upcoming year. my point - they've already taken this into consideration, so don't expect a windfall. $3.10 might be acheivable. but that's only 10% higher than the earnings this year, so i wouldn't use a multiple of 25. the safe thing to do, especially with market sentiment so negative at the moment on the stock, is to be conservative with forecasts (ie. use a multiple of 15 times $3.00 per share and add a $5 premium for future acquisitions = $50). holders of the stock should feel pretty safe at these levels (ie. it's like taking a defensive position in the market during times when multiples in general are so high). then if geac ever does another big acquisition the stock should get a "pop", and holders of the stock will feel like their holding a winning ticket in a lottery. of course, not everybody likes to buy lottery tickets! perhaps this is why so many of the analysts have targets between $50 and $60.