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Technology Stocks : Zapata (ZAP) -- Ignore unavailable to you. Want to Upgrade?

To: RJC2006 who wrote (521)	7/26/1998 12:34:00 AM
From: DanZ	Read Replies (3) \| Respond to of 1206

Bob, ZAP said in a press release that this will be one of the most profitable quarters in their history. They earned 27 cents last quarter so it stands to reason that they are going to earn more than 30 cents this quarter. Here's what I think is important. 1. How much did the sale of OME contribute to earnings? I think that this will largely be ignored by the market and subtracted from the operating results even though ZAP is going to include it. BTW, it's very common for companies to include extraordinary gains in their earnings but they normally state how much their earnings would have been without the gain. Does anybody know how much they made on this transaction? 2. How fast are sales and earnings growing in the fish business? 3. Were the recently acquired Internet businesses accretive to earnings? If they earn 24 cents excluding the extraordinary gain from selling 40% of OME, then this would be a blow out quarter considering that the estimate was 17 cents. If the Internet business is already accretive to earnings, I would look for analysts to increase next year's estimate well above the current 90 cents...Earnings increasing rapidly, multiple expands, stock goes up a bunch.