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Stocks J / JetForm Corporation
|Subject: My early impressions of the company||Date: 1/20/1998 11:57 PM|
|Author: ozhog||Number: 2 of 23|
According to Zack's the FY 98 estimate for JetForms is $.45 which would give a decent but not low PE of 29 after the April quarter. That's not too bad though as the stock is estimated to earn $.80 in FY 99. That would be a 78% increase. Long term growth rate is estimated at 38% or so in one of the services. Assuming a multiple of 30 in April 99 would give a target price of $24.
You must be somewhat cautious in using some of the numbers to calculate financial ratios since this stock is a Canadian corporation and many of the numbers are in Canadian dollars. Mixing Canadian earnings with a US dollar price would not be prudent.
I work for a state Dept. of Transportation and we are implementing a Records and Workflow system. The vendors we selected are using JetForms for the e-form solution. In fact when looking at the proposals from all of the proposers for the project nearly all of them indicated they would use JetForms for the e-form solution. That tells me that people that put these systems together for a living think this is a good product.
As far as competitors go, the JetForms people that met with us today said Microsoft is one of their major competitors. That's a scary thought but he also said Microsoft uses some of their components for electronic signature. It looks like JetForms is positioned well at least in the near term with so many of the implementers hot to use the product.
One thing I do want to look into is the amount of debt the company is carrying. While not huge, it's more than I like to see. I think there was a recent acquisitin that this may be related to.
I welcome any other thoughts on this company
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