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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Bucky Katt who wrote (1995)	1/14/1999 6:14:00 PM
From: ~digs	Respond to of 57584

An interesting issue I ran across in the February 1st publication of Bottom Line Personal: Interstate National Dealer Services, Inc. (Nasdaq: ISTN) markets and administers warranty contracts on new and used automobiles... motorcycles... boats... homes... and recreational vehicles. ISTN is a paperwork company- it does not actually do warranty repairs. It writes the warranties and then works with insurers to process any claims they receive. ISTN has an extraordinary $4 per share cash in the bank- 40% or its current stock price. Its cash is growing by 25% per year. Earnings have compounded 60% per year for the past six years and should continue growing at 25% a year from a larger base. ISTN has a very strong balance sheet- using conservative accounting principles- and no debt. Bonus: It has a strong Internet component. The services it markets through the Internet make up 20% of its business and growing. But ISTN is little known and not followed by Wall Street analysts. NASDAQ: ISTN, Mitchel Field, New York. Recent share price: $8 3/4. Fiscal year: October. Earnings per share: 1999 estimate/$0.75... 1998 estimate/$0.60... 1997/$0.47. Shares outstanding: 4.64 million, Float: 1.7 million. News and profile: biz.yahoo.com biz.yahoo.com (I just got this biweekly publication yesterday. Notice the recent share price they listed: $8.75??? It hasn't been that low since before Christmas. I wish this magazine was more timely!!! It's hard to classify this one as a beaten down gem any longer... does anybody think it's worth chasing? Maybe wait for a pull back?) BTW, they beat 1998 estimates by seven cents, earnings were announced today and initiated a slight sell-off.