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Technology Stocks : RomTech (Nasdaq: ROMT) -- Ignore unavailable to you. Want to Upgrade?

To: FRANK J CATALANO who wrote (226)	7/19/1998 6:37:00 PM
From: Roger Thrash	Respond to of 427

I dont think it'll carry that kind of P/E... Sure it COULD hypothetically but in all likleyhood even if they do 30 cents this year the street will look at it like it'll get tougher to keep growing at that pace. Therefore I think a 10-15 p/e is more conservative. II's special situation report issuing a sell signal has brought us this GIFT of a stock price. They even reported the CEO saying he thinks ROMT can earn 40 cents this year. Even at the LOW end.....24 cents a 10 p/e will give us a 56% gain from the current $1.53. I'm hoping for 35 cents and a 12 p/e for a $4.20 stock price in 1 year. So the risk/reward in one year is highly favorable.... $2.67 in upside potential verus say 75 cents in downside. I cant see the stock trading below 75 cents. The upside is more significant if we look 2 years out. Say they earn 30 cents this year and 40 cents next. Then it could well carry a 15 p/e and a $6 pricetag. And those are with LOW earnings estimates in my opinion. Whats neat about this is I think their growth is almost a sure thing. As people buy PC's they'll keep spending $9.95-19.95 on impulse software. I little caveat....if they indeed are ONLY going to sell $19.95 stuff, I believe the competition will be more significant in that price range. Still they only have like 3% of the budget category. Lots of room for growth....and they've got MOMENTUM.