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 Natural Microsystems (NMSS).
Fundamentals:
|
NMSS |
1Q 99/98 | 4Q 99/98 | 3Q 00/99 | 2Q 00/99 |
|
% Increase in Quarterly Sales Growth |
-1% | +43% | +67% | +82% |
|
% Increase in Quarterly Earnings Growth |
NA | NA | +106% | +175% |
| % Increase in Quarterly Net Profit Margins | -10.3% | -40.8.6% | 3.6% | 15.6% |
Earnings Outlook:
Estimates for the next two quarters and next two years:
3Q 00/99 |
4Q 00/99 | 2000/1999 | 2001/2000 |
| E .07/-.13 | E .12/-.37 | E .29/-.82 | E .77/E .29 |
| +154% | +105% | +135% | +166% |
NMSS provides enabling technologies to suppliers of networking and communications equipment. Its customers incorporate its software and hardware products and technologies into their solutions in order to enable service providers and enterprises to rapidly and cost-effectively deploy data, voice and fax applications and enhanced services in converged networks. Its products, which use technologies including digital signal processing, media processing, signal protocol processing, switching and packet classification, are essential components in networking and communications equipment deployed in the wireline and wireless Internet and PSTN. The Company also provides its customers with software development tools and systems architecture and engineering design services. These products, tools and services facilitate the rapid creation and deployment of enhanced services and applications
Ratings as of 8/31/00 include:
EPS: 43 RS: 99 ACC/DIST: A, GROUP
STRENGTH: 11
Industry Group: COMPUTER SOFTWARE-ENTERPRISE
Shares
Outstanding: 32.8M, Float Shares 29.8M
Institutional Ownership: 80%
Insider Ownership: 9%.
Average Daily Volume: 657,000 shares.
Next Earnings Report: 10/14
NMSS has been maintained support along its upward sloping trend line since April. Recently NMSS made a Double Bottom (W shape) and has been consolidating near its 52 Week High over the past few weeks.
NMSS is forecast to have strong earnings growth acceleration the next two quarters and continue this trend into 2001. Currently NMSS is in a weak performing Industry Group which has a relative strength of only 11 as of August 31st. However this could change in the months ahead as the Institutions continue to look for new sectors to invest their money in. Considering NMSS's forecasted accelerating earnings growth during the next two years this may be a 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.***
