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I want to start a thread on this recent IPO. ASI Solutions Inc. is a leading national provider of a comprehensive range of human resources outsourcing services for large organizations seeking to hire, train and develop a higher quality, more effective workforce. The company's products are organized into four core areas: assessment and selection, training and development, customer contact monitoring and employment process administration. ASI markets its services principally to Fortune 500 companies for which customer service, sales and call center functions are critical components of their businesses. ASIS went public in April of this year and last week announced their 4Q and year end earnings. Sales grew by more than 100% and EPS by 400%! On Invesor's Business Daily's ranking system, ASIS is one of the very few companies to enjoy an EPS & Realative Strength rank of 99! And the fact that they reached this ranking level in less than two months is even more remarkable! biz.yahoo.com I estimate that for the upcoming year, ASIS will earn about 58›. At today's closing price of about $10, that gives them a PE of 17. Other companies in it's group routinely get a PE of 30. That would price ASIS shares at around $17. With an EPS growth rate of 400% and sales growth of over 100%, I believe, ASIS deserves an even higher PE multiple! With a PE of say 50, which is half it's growth rate, this could well be a $29 stock by the year's end. Another couple of quarters of solid earnings' reports, then that IMHO is a distinct possibility! Any comments! Happy Investing! Karim | ||||||||||||||
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