Focus Stock of the Month
Once a month we will provide a free analysis of a company from our Amateur Investor Index Top 50 which we feel is a stock to watch.
Our selection for August is Information Resource Engineering (IREG).
Fundamentals:
|
IREG |
3Q 99/98 | 4Q 99/98 | 1Q 00/99 | 2Q 00/99 |
|
% Increase in Quarterly Sales Growth |
-44% | -37% | -3% | +40% |
|
% Increase in Quarterly Earnings Growth |
NA | NA | 0% | +142% |
| % Increase in Quarterly Net Profit Margins | -42.6% | -15.6% | 6.9% | 8.8% |
Earnings Outlook:
Estimates for the next two quarters and next two years:
3Q 00/99 |
4Q 00/99 | 2000/1999 | 2001/2000 |
| E .13/-.29 | E .21/-.13 | E .44/-.56 | E 1.04/E .44 |
| +145% | +262% | +179% | +136% |
IREG is a provider of virtual private network (VPN) technology and solutions for secure business communications. The Company offers both original equipment manufacture (OEM) technology and end-user products for VPN and e-commerce applications. IREG's European subsidiary, Gretacoder Data Systems AG (GDS), designs, manufactures and markets enterprise communications security technology for the enterprise market. GDS focuses its product technology on encryption, authentication, transaction security and secure remote access. IREG provides network security solutions worldwide for financial, enterprise, telecommunications and government use. IREG's SafeNet technology and product line has enjoyed broad market acceptance through both the end-user and OEM VPN markets.
Ratings as of 7/31/00 include:
EPS: 56 RS: 92 ACC/DIST: A, GROUP
STRENGTH: 43
Industry Group: COMPUTER SOFTWARE-SECURITY
Shares
Outstanding: 6.6M, Float Shares 5.1M
Institutional Ownership: 46%
Insider Ownership: 23%.
Average Daily Volume: 120,000 shares.
Next Earnings Report: 10/19
IREG has formed a Cup over the past four months after making peaking in late March. IREG held up remarkably well in the last week of July during the big sell off in the markets which signifies a sign of strength. IREG now needs to form a Handle over the next two to four weeks to complete the Cup and Handle pattern.
IREG is forecast to have strong earnings growth acceleration the next two quarters and continue this trend into 2001. Currently IREG is in a weak performing Industry Group which has a relative strength of only 43 as of July 31st. However this could change in the months ahead as the Institutions continue to look for new sectors to invest their money in. Considering IREG's forecasted accelerating earnings growth during the next two years this may be one company to watch in the future.
***The Focus Stock of the Month is our opinion of a company to watch in the future. This doesn't mean it's a recommendation to buy the stock.***
