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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Jack Jagernauth who wrote (6080)	11/1/1998 8:21:00 AM
From: JZGalt	Respond to of 18929

Jack, I am assuming you are questioning the charge related to R&D. It was surprisingly high, yet it appeared to be a one time charge (ugliest words in the financial statement)related to the acquisition of another ATM based company. This quarter they are back on track. 29 cents diluted vs. 22 cents last year. R&D costs expanded a bit, yet SG&A costs were only moderately higher despite a 10% pickup in sales over the June quarter. Latest research guesses for earnings can be found here: biz.yahoo.com I believe the 1999 estimates are relatively conservative. I'd be looking for $1.40-$1.50 in Dec. 1999 and this stock typically trades at a p/e of 40, so you get a target price of $56-$60 if I have done the math correct. For a buy and hold investor with the stock at $45, this is a reasonable return, but the risk the stock takes a swoon is high (it will recover). The reason I mentioned it here is they have a very high volatility. From October 1997 to 1998 the stock hit $20 went to $50, hit $23, and is now back in the mid $40's. I am a buy and hold type of guy at heart, but it tears me up to find a great company and not profit from this volatility. ---- Dave