With no near-term catalysts (the company stated that MANC will be dilutive for 2 quarters), ePlus stock has begun to drift downward. ePlus has their hands full integrating the MANC acquisition while trying to control costs from Sarbanes-Oxley compliance and the Ariba lawsuit. I think this is all quite manageable.
If ePlus can, as Phil Norton stated on the conference call, gain $100 million in sales from the MANC acquisition, the market cap of this stock can easily double (assuming no p/e expansion). If ePlus can convert some of these MANC customers to the ePlus software platform (as opposed to just equipment buyers or lease clients), $100 million will prove to be conservative.
Any damages won from the Ariba lawsuit will provide excellent headline exposure which could catapult the stock. But that potential outcome is a ways down the road.
In the meantime, I expect ePlus to continue to repurchase stock.
Welcome back! We were beginning to were about you.
I have not given up hope on ePlus. I have a long time horizon. I expected more in the short-term, but I still like what they're doing and the low risk nature of their business (in terms of consistent profitability).
Yes, you (and boater) told me so and you were both right, at least in the short-term.