To: Mighty_Mezz who wrote (8613 ) 1/7/1999 2:22:00 PM From: Emec Read Replies (6) | Respond to of 15094
Just out!!!!!! "American Fronteer Financial -We are raising our price target for HDIE, which we recommended at $2.75 on October 31, 1998. Our new price target is $15-$20 per share. This change is based on a confluence of factors 1) a change in market conditions for small and microcaps stocks from October 1998 to present; 2) several strategic relationships either completed or nearly completed which could greatly enhance HDIE's sales and earnings; 3) recent recognition-and the prospect of additional recognition-of HDIE by the financial community; and 4) the scarcity of companies in the middleware area and the financial community's increasing attention here. It is important to remember HDIE's relative valuation is low vis a vis other successful middleware companies such as BEA Systems, NEON and TSI International. HDIE's market capitalization to sales ratio is roughly 7.5X versus 22.9X for NEON and 12.5X for TSFW. Due to this lower relative valuation, continued success in gaining important strategic partnerships/approvals...and continued success in meeting business goals, we believe the stock could go much higher. By the way, the S.W.I.F.T. agreement could be a watershed event. The agreement provides credibility for Cloverleaf Finance, HDIE's main product for the financial services industry, and instant access to a large number of financial institutions not only in the U.S. but worldwide. One closing note:volume levels and the price of NEON's stock both exploded roughly 7 business days before an important announcement with IBM was announced in February 1998. We believe that HDIE is close to completing a very important agreement with one of the world's largest computer companies. Although significant sales and earnings from this type of agreement might take several quarters to materialize, the effect on both the company and the stock-remember NEON-could be enormous. Buy. NEON's stock advanced 630% to its recent high after announcing a strategic market arrangement with IBM. This event gave NEON 1) access to several thousand sales people with worldwide distribution capabilities and 2) product credibility via an endorsement with IBM as its partner. In the event that HDIE engineers a similar strategic arrangement with IBM as its partner, it could produce very rewarding returns for investors over the next 18 months." Very interesting stuff. Now before anyone dismisses American Fronteer Financial as a small insignificant firm, this analyst was the first one pounding the table on NEON at $10. GO HDIE!