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Technology Stocks : VISIO Corp (VSIO): Big ISO 9000 Play -- Ignore unavailable to you. Want to Upgrade?

To: Dan Spillane who wrote (229)	10/30/1998 10:00:00 AM
From: Grommit	Read Replies (3) \| Respond to of 522

VSIO's financials: Their balance sheet is impressively strong, so there is substance to this company, but the earnings are not quite what they seem to be, IMO. Can you explain why their tax rate is so low and do you know what tax rate is in the EPS numbers for 1999? The EPS for 1998 was .89 (with the one time charge) but would only be .71 if fully taxed. At $26.5 stock price the PE is 37. Not cheap. (You might argue that we should take out the one time charge from the EPS. Others might argue that if you do that you must also take out the previous one time charges and proforma them back in on an amortized basis -- so who knows where the EPS ends up -- maybe at the same .71 is my guess. But the big thing is the tax rate -- 25% for 1998.) The company is not smoke and mirrors, as the cash flow and balance sheet testify to, but this price is not the screaming buy that it looks like at first blush. I bought yesterday on a whim, looked closely and bailed this AM. I think there is plenty of upside if they continue the growth, but if they stumble the stock will tank. I am not that familiar with the company yet to have an opinion on their sales outlook. good luck