Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Hummingbird Comm. (HUMC) -- Ignore unavailable to you. Want to Upgrade?

To: David Carlson who wrote (1811)	3/5/1999 6:34:00 PM
From: Vahe	Read Replies (1) \| Respond to of 2018

The market does not seem to like it. Why?

To: David Carlson who wrote (1811)	3/7/1999 5:21:00 PM
From: Mitch Vine	Respond to of 2018

Borrowed from the Yahoo board.... Growth Track Effects by: sheldrake9 1935 of 1935 HUM's fundamental price problem has been driven by the decline in its growth rate. The BI division, while now having an acceptable growth rate, accounts for only 25% of the total sales mix and, as such is diluted by the plateau, or even decline in connectivity sales. Even the 92% increase in BI sales wasn't enough to overcome the 15% decline in Connectivity sales. With the addition of DOCS the two high growth divisions will acount for 58% of the sales mix. Using the latest reported quarters from the two companies we would have a product mix that is 42% connectivity (instead of 75%), 14% BI (instead of 25%), and 44% DOCS. With respective growth rates of -15%, +92%, and +52%, we would have had an overall growth rate of +29% instead of -2%. Prior to the DOCS takeover HUM has been crawling along with a PE of about 12. With a growth rate of 29% that PE would have been a lot higher: a PEG of 1.0 would have given a PE of 29. If HUM can get back to being valued as a growth company rather than as a value company, then we give Fred full marks for the takeover. And we now have $200 million in cash in the kitty, instead of $140 milliom!