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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: PK who wrote (266)	5/6/1999 2:42:00 PM
From: broke2	Read Replies (1) \| Respond to of 7056

Now that is what I wanted to see. :-)) Great news. Should run to the close today. This has made my day. I love sitting back and counting money. LOL Gotta love it. broke2

To: PK who wrote (266)	5/6/1999 3:50:00 PM
From: Blue Voodoo	Respond to of 7056

Revised PE calculations for HITT: A couple of weeks ago I calculated an implied year end PE for HITT. see Message 9172493 That calculation started from HITT's 1st quarter operating earnings, $289K, and assumed earnings would double each quarter. Today's news show revenues doubling each month(!), which is an eightfold increase each quarter. I doubt they can sustain that pace for a year, and earnings will grow slower than revenues (that new ad campaign is gonna cost). Very conservatively assuming earnings quadruple this quarter and double in succeeding quarters (i.e., about half the growth rate of revenues, assuming after this quarter that the growth rate of revenues also halves)yields $9.248 million in earnings for the year. At a float of 3.25 million shares, thats $2.846/share. At today's price of $14 per share, we get a 1999 PE of 8.75. Less conservatively, but still not extravant, if earnings grow at the same rate as revenues, but again assuming the revenue growth rate halves after this quarter, by the same calculation we'd get (drum roll please): a 1999 PE of 0.55 !! That is not a typo. I think the likeliest scenario is somewhere around PE = 6, but that's still a screaming buy. I picked up more today at 14, though I suspect MM's will take advantage of any slackening in volume in the next few days to walk this baby back to 11 or 12 if they can. If they succeed, I'll be first in line to pick up lots more. Bottom line: Hitt still looks like a screaming buy.