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Here's a great company with 200% earnings growth, whose stock has risen on news, rather than hype... To see a chart of PSTC's stock rise, go to web page investools.com You'll note that PSTC has come up from a low of 1/8 to 7/8 in less than one year, a seven-bagger, so far. My analysis indicates the potential for PSTC to top $4 per share over the next year. The name of the company is "Products, Services, and Technology, Inc." or PST for short. PST is a holding company with only one wholly-owned subsidiary, Distributed Networks Inc. (DiNet). Earlier this year, PST sold off its other subsidiary, Bernard, Lee & Edward Securities, a small investment banking firm, in order to focus its attention on DiNet. DiNet is a small wireless communications company that is focused on providing Cellular Digital Packet Data (CDPD) and Global Positioning Satellite (GPS) solutions to a broadening range of industries. The company is growing REVENUES at an accelerating rate, having grown 24% in fiscal 1995 (ended September) and an expected 48% in fiscal 1996. September earnings pending, EPS is expected to have grown by 300% in fiscal 1996. My estimates call for 77% revenue growth and at least 100% earnings growth in fiscal 1997, as DiNet begins recieving orders from larger global companies. I'm working on getting the scoop on which companies they're dealing with, and will fill you in as soon as I can. I suspect that big telecom companies (like AT&T) may be among them. If so, then we could see PSTC's stock take off very shortly. I'm going to try to get the scoop on this by the end of next week. With a doubling in earnings this year, PST is an up-and-comer in TWO industries that are no longer buzzwords, but are now actually taking off, with expected growth rates of 50%+. As a pure play with large carriers as clients, I think that PST's EPS will top 10 cents in 1997 and continue to grow at a five-year rate of 75%. Fundamental valuation would value this stock at $2.50 a share WITHOUT a large contract coming in. However, if PST does sign a big deal, $5.00 would not be out of the question and $10 could come in 18-24 months (just check the valuations of other hotshot communications start-ups). Mike McLaughlin, the CEO of PST gave me a copy of the company's complete business plan and it looks really good. They plan a four-barreled approach that will include 1) leveraging growth in the CDPD and GPS markets, 2) expanding their reach by entering new vertical markets 3) entering new geographic markets and 4) signing deals and partnerships with Fortune 500 companies. Overall, this company has more short-term potential then HTSF, which I introduced to the AOL crowd late last year as a short-term play at 43-cents (it peaked as an 8-bagger at $3.43). The great thing about PST is that it is also a long-term play and my first official microcap pick of 1996. You can get a copy of PST's business plan by calling Mike McLaughlin at 352-323-1295. Alternatively, I'll send you a copy of mine if you email me at mgomes@idcresearch.com. Also, feel free to email me with any questions. Good Luck and remember who mentioned this one to you first! Mark Gomes - Analyst International Data Corporation | ||||||||||||
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