| Moderated By: Joe Dancy -- (Not Moderated) -- Started: 1/16/1997 10:32:00 AM Revision History |
The Telecommunications Reform Act will cause billions to be spent to upgrade phone and cable systems to support digital data, to increase bandwidth, and to handle increased internet traffic. Phone, cable, and utility companies will race to upgrade their systems or lose market share to competitors if they become obsolete. Dycom (DY-NYSE) provides engineering, design, and construction service to phone, utility, and cable companies, sells at a trailing PE of 12.7, has an estimated 5 year eps growth rate of 20%+, a price to sales ratio of 0.60 (vs. the markets p/s of 2.0), has increasing margins the last three years, and management owns a big share so their interest is with the shareholder. There are other companies growing faster in this nitch, but they don't sell for a PE of 12.7.
Company and industry details are set out in the Lone Star Growth Investor at members.aol.com