To: Jeffrey L. Henken who wrote (394 ) 7/12/1998 9:34:00 AM From: Tensane 1 Read Replies (1) | Respond to of 1020
Jeff, In reviewing the earnings report, although we all expected maybe a little more(as if a 65% increase from the previous quarter is not enough),I guess we'll just have to accept it.(LOL). The most important item in the report was that very little business from the deals that were signed this quarter are in the numbers yet. As I have said in numerous previous posts, the 3rd and 4th quarters are going to be huge. As far as your question of PE, PE is earned based on potential that the market place perceives what rate the company will grow, how safe the market feels the security is, and it's track record of accelerating growth. On the first issue, perception of growth, our small group of investors who follow the company(and boy is this group growing), I feel we all agree that we will see huge growth in the near future. On the issue of safety, most small companies are not considered safe, but the industry is considered relatively safe, so this may be a wash. On the last issue, the track record of accelerating growth, we now have 2 strong quarters and the making of 2 huge quarters to end this year. Can this company achieve a PE of 79, like others in this industry? I don't think it will any time soon, but I think it can begin to show signs of increasing to that level quickly. If the next two quarters come in at the accelerating pace that we all feel it will, it may not take too long to achieve a much higher level of PE. What else can you ask for in a company, you have a booming industry, Y2K compliant solutions, great alliances with heavy hitters in the industry, the beginning of a new and huge market (healthcare) and management who wants to grow the company,through all means, be it mergers or new fields. We have a great future with this company, I'm already looking forward to the next quarter. Kevin