| An SI Board Since March 1997 |
| Posts |
SubjectMarks |
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| 10 |
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MNS |
| Emcee:
Banks
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Type:
Unmoderated
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MacNeal Schwendler is a leader in the development of Finite Element Analysis (FEA) and Computer Aided Engineering (CAE) software. There have been many recent changes in the company. The most important of which, in my opinion, was the appointment of Tom Curry to the post of President and CEO. Since his appointment, Mr. Curry has cut the dividend, which was almost 7% at the time, and refocused the organization on it's customer segments rather than on engineering in general.
As a result, the stock has suffered as many investors who bought the stock for income purposes bailed out (my theory). Last quarter, MNS reported earnings of $0.28/shr which met the concensus estimates. For the year they earned $0.71/share and are expected to earn $1.01/share this year. The stock is trading at 9 3/8 or 13 times historical earnings.
I have been following this company for some time and am long the stock. What interests me is the lack of interest, in general, in this company. I believe that as MacNeal continues to hit it's numbers, more analysts will begin following the company. As far as I'm awere, there are only 3 firms following, 1 with a strong buy and 2 with buy ratings.
Enough from me, is anyone else out there wondering why this company is priced as low as it is?
Robert
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