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Technology Stocks : Leasing Solutions (LSN) -- Ignore unavailable to you. Want to Upgrade?

To: Eben Battaglia who wrote (26)	10/26/1998 11:51:00 PM
From: Ming	Read Replies (1) \| Respond to of 33

According to company, they have $1.4 bln worth of equipment. Consider that price of this equipment falls roughly to $0 in 5 years. Yet revenue for this year was projected at 300 mln. Considering muted growth, rev from current equipment will equal roughly 2 billion over next 5 years. take away depreciation(1400 million over 5 years), sales, interest, marketing & management, & maintenance, (which well estimate at 400 mln over next 5 years) and pretax is roughly 40 mln /year. Assuming 33% tax rate, post-tax=26 mln/year. divided by 10 million shares(assuming potential dilution) gives earnings of $2.6/share/year over next 5 years. Of course these are very rough calculations, and therefore cannot be too accurate. But IMO they show that the company can be very profitable. They do fit into the overall trend of outsourcing and reducing capital expenditure which is currently very popular with many companies. therefore, it seems that things look good for the long-term. Any comments?