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SPYG |
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I'm having trouble understanding the under performance of this stock, and thought maybe people in this forum would have opinions as to why it's price is so (relatively) low.
Spyglass has announced they'll be releasing a proxy server with SurfWatch filtering. First, SurfWatch is the filtering market leader, so this product should do well in schools, and family-oriented ISPs. Then, you have the corporate Fortune 100 companies that don't want their employees spending all their working hours at the ESPNet (or techstocks :) website. Acording to the press release "Organizations may also create customized profiles of sites they wish to block or allow". I would think there will be great demand for this functionality.
Spyglass also announced record earnings for the tenth quarter in a row, something foreign to most if not all of the Internet plays out there. Course, that announcement came out right around that huge NASDAQ tech plummet, so maybe the good news fell on deaf ears.
And, finally, they recently announced deals with Wells Fargo Bank, NASA, and Ohio State University, and while that's none of these are in and of themselves a huge deal, because Spyglass announces those sorts of things all the time, it's like the market didn't even notice or care.
I was looking through an analysts's old review of the stock and they had forecasts for earnings expectations over the next 2 years. So far SPYG is on track. (Last summer Alex Brown thought 96 sales would be 16mil, and Duff and Phelps thought they'd be 23mil -- through 3 quarters Spyglass is at 15.7mil already. Typically the 4th quarter is the best as last year 4th quarter sales were over 1/3rd of revenues.) Based on these numbers, Duff and Phelps thought we'd be at $28 (actually $56, but the post split equivalent is $28). So if a fair price is mid twenties, what's the heck is the stock doing at $15?!?
I guess I'm just peeved that I bought at $34, and again at $20, each time thinking it was a steal. ;)
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