Stockchase Opinions

David BurrowsGEAC ComputerGAC.TODON'T BUYSep 22, 2005

Not a significant grower. Underperforming. Very hard to find a Canadian technology stock that actually looks very good.
$10.85

Stock price when the opinion was issued

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PAST TOP PICK
(A Top Pick Oct 18/05.) Sold at $12.48. Was acquired by another company.
PAST TOP PICK
(A Top Pick Oct 18/05. Up 19.5%.) Sold it at $12.48.
PAST TOP PICK
(A Top Pick Oct 4/05. Up 16%.) Sold his holdings at $12.48 as it is being taken over.
SELL
Sold as he didn't think they were going to get a better offer.
BUY
Very interesting at these levels. Trading around 11 X earnings. Management has done a very good job. The markets they are involved in are growing. A free cash flow yield of about 10%.
DON'T BUY
Ranks 423 out of 700 in his quant model. Earnings estimates have been chopped 7% in the last 90 days and 12% in the last 60 days. Earnings growth year over year is down by 21%. Earnings are expected to drop from $0.87 in Apr/05 to $0.79 in '06. Looking out to '07, the forcast is for $0.81.
TOP PICK
Its peak of $12.40 was in anticipation of a takeover offer. The company is in play.
TOP PICK
$0.75/0.80 is your base rate of earnings. If the street pays 15 X, that gets you to $12. They have about $2.25 in cash. In the event of a takeover, it's probably around $14/15.
BUY ON WEAKNESS
His model price is $16.70 which is a 54% differential. It will probably go to about $10.40 on this last pull back which will be a good price.
COMMENT
Stock has done very well over the last year or so. Hasn't heard of any take over rumours as the caller suggested.
TOP PICK
Has $2 cash per share. Expects $0.80 earnings. Would exit at $14.
DON'T BUY
Limited upside at this point in time.
DON'T BUY
Cut his holding back because of the internal wrangling. Wouldn't buy until it's clarified.
DON'T BUY
Has had a good run and may be time to lock in your profits. Would have concerns on its growth trajectory. 50% of the business is services driven by software sales. If the software sales are not there, then the service revenue will eventually be hurt.