NDAQ:FORTY - Post by User
Post by
Smartraderon Apr 04, 1998 2:41pm
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Post# 703879
Undervalued Stock
Undervalued StockFormula Systems (FORTY) is undervalued, unknown, unappreciated. Robertson & Stephens just started coverage with a buy recommendation. Price target is $55-$65. Earnings estimates are for'98 $4.23 and for '99 $4.56. FORTY is trading at $45 1/4. It has had a huge run up in the last month but it is still undervalued. It trades at 10 times earnings for this year. Next month they will come out with earnings and I believe that they will beat estimates because they spunoff a company called Forsoft (FORSF) and that will help on earnings. My forcast is that by year end FORTY should be around $70-$75. Thats less than 20 times this years earnings estimates. My break even price is $29 and I will buy on dips when I feel its hit a bottom. This is a long term stock which will appreciate greatly in the next year or two. When it finally gets noticed and appreciated it will run up fast. 30% of the stock is owned by the company.