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  • jbmjbmjbm01 jbmjbmjbm01 Mar 1, 2005 12:49 PM Flag

    IPT vs. PCTY

    I have to disagree with your conclusion.
    Net income in dollars:
    13.9 MM 0.96 MM 6.9%

    This is close to the 5.9% ratio of stock price.

    My conclusion: Stocks are roughly equally valued.

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    • Today the valuation is in line based on comparing net income only. My outlook is 6-12 months. The net income, was diluted in large part to capital investments. I base the 12 month stock price at 1.60-2.25/share mainly on number of stores and revenue comparisons. Both companies compare in terms of gross profit on sales dollars. IPT will make up the lost ground on net income within a relativly short period of time. When that gap closes we are looking at a comparable ratio of 12-18%. This does not include new store openings. Again, this is a stock that could easily produce a 100% or greater return on stock investment at this current price. Good luck to all!

      • 1 Reply to stayundertheradar
      • The key measure is net income. I do agree with you and the longer range outlook.

        We just had a net income of $990,000. Today the share price is $0.70 (overblown). For each $1MM of net income rise we will see a $1.00 rise in the stock price. Does anyone not believe this will happen? I will continue to buy as much as I can afford down here. I can't afford not to.