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Edgewater Technology Inc. Message Board

  • RUNNER1947 RUNNER1947 Sep 8, 1998 4:38 PM Flag

    When the markets rocket...

    It continues to be really stressful on days like
    today when the Dow gains nearly 400 and the Nasdaq
    close to 100 and this puppy just sits again. Well, at
    least a gain of .19 is better than a loss that we are
    all so accustomed to seeing.

    Good Lord, how
    much pain can we all stand?!

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    • You must have one!
      Boy, what a

      Can you pass a message to your friends at STAF that
      it would be
      real nice of them to drop a few words
      on Business or PR Wire so we can see this mighty
      stock hurry back up.

      I talked to some people at
      DLJ and Goldman, and their comment was:
      NO PR -
      NO INTEREST from institutional buyers.

      the stock price is going to continue being affected
      by a 100-share trades until then.

      STAF is
      under a black-out period (to do with the merger). Do
      you know for how long? What about their 3rd Qtr

      They did buy a company in Houston. Why not make a big
      deal out of it? Even if it's not an IT firm, if it's
      making money, what is wrong with that?

      STAF needs
      to show the Street that it's still ALIVE and


      PS. Do you know where can
      I purchase 100 Dec 20 PUT contracts (that's for

    • Appreciated your message. Today was blah for us.
      Down 1/2 on light volume. It's a thin market right
      now. I put in a small order and moved the bid a
      quarter. I'm afraid without any significant fundamental
      announcements, we may get a retest of the 17 low. I'd rather not
      go there again, but if we do, I'll be in there
      aggressively buying.


    • Scott,
      Thanks for your postings. Very informative. Please keep us "posted". Thanks again.

    • Don't know if they're still using a PR firm. They
      used to. The faxed press releases I get have
      headquarters listed as the source.

      I'd rather they
      didn't use the PR firms. I'd like to keep the "hot"
      money away from this thing and let the fundamentals
      speak for themself. Besides, once the company gets
      Goldman and Morgan in their camp, they shouldn't be
      spending money on self-promotion unless it aids their
      acquisition campaign.

    • SmokingM:

      The company's been working on
      the Robert Walters deal. Remember, this is HUGE for
      the company. The proxy statements will probably be
      going out tomorrow. Once investors get to see the
      actual financials, they may get regain a little

      We should also get 3Q earnings around October 23,
      but no definitive date is set to my knowledge. Also,
      October 27th will be when shareholders vote on the Robert
      Walters deal.

      The A.G.Edwards analyst pounded the
      table today reiterating a strong buy. She wrote in her
      research report something I've suspected for quite some
      time... Goldman Sachs and Morgan Stanley will pick up
      coverage after the "blackout period."

      I'm not in
      this for the short run anyway. $50 per share would be
      nice today, but I think it's trival for this company's
      longer term prospects. Of course, if someone paid me $50
      today, I'd sell. But 12 months from now I might be
      inclined to hold out for higher prices.


    • Your reasoning is clear, but I am not sure it can
      be applied to a small cap company. Who

      I think it's time for STAF management to come up
      with a story.
      Anything (positive). NO NEWS is NOT
      GOOD NEWS!

      Market moved up over 250 points -
      STAF up 1/8. Fantastic! What an investment!

      you know if they have a Marketing firm or a PR
      If they don't, they should. If they do, they should
      change it.

      By the way. I am sorry if I rain on
      you parade. I must say that
      you are the best (and
      may be the only) cheerleader for STAF at this

      By the way. If STAF made a deal in Houston, why is
      it HUSHEd-up?

    • By the way, I didn't magically pull that 27x
      number out of a hat. It's the midrange P/E for STAF
      historically. It's traded as high as 40x+ and as low as 12x.
      The midpoint is right at 27x.

      I'm no Einstein,
      but the way I see it is if people were willing to bid
      the stock up to over 40x eps in the past, they may
      just do it again. Conversely, folks have only let the
      stock drop to 12x eps before the bottom fishers started
      baiting their hooks.

      Conventional wisdom, whatever
      the hell that is, states that a "fair" price for a
      company is a P/E equal to its growth rate. So a growth
      rate of 35%, technically, would deserve a 35x P/E.
      There are holes in that methodology, but it's a decent
      rule of thumb.

    • Thanks. I don't want to work for StaffMark, I
      just want to own it. This isn't the only company I
      own, but it's certainly one of my favorites. 27x
      earnings may be high for the staffing industry since the
      industry is growing at 12% annually. However, STAF
      deserves a significant premium to its peer group because
      its earnings are growing significantly

      STAF is exciting enough. The problem is there's only a
      handful of us who know about the company. People don't
      just stumble on this thing, and it's certainly not a
      household name. Why are those other staffers moving up more
      quickly? I don't know, and really don't care. I know what
      we've got right here -- even if Wall Street might have
      overlooked it in the shortrun.

      For what it's worth, I
      manage money for a living.


    • If you are not currently working for STAF, I
      think you should.

      You have the right attitude.
      Just, please, come down to earth and admit, that a P/E
      of 27 (as you indicated previously) is overpriced
      for most firms, such as STAF in

      Also, why Accustaf, Romac, Cotelligent, etc. are moving
      up at much faster pace?

      I agree, if Morgan
      and/or Goldman will begin coverage of STAF, it might
      help. But first, STAF has to be come a more
      company, at least for those that do not read this message

    • I have a pretty good feeling that we'll see some
      additional analysts start covering STAF within the next
      couple months. Certainly Goldman Sachs and Morgan
      Stanley, but there may be a couple others too. I'm sure
      their initial rating will be "BUY"


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