(Updated on October-19-2000)
ISYS (Integral Systems)
Integral Systems is a company that produces software for satellite control systems. Customers are NASA, US Government, Boeing and many more big names. Due to a delayed order of Boeing in Q1 ISYS was forced the revise the revenue growth downwards. Integral Systems however noted that the orders were delayed and not lost. The shares of Integral Systems lost 70% of their value because the "profit warning" came at the same time the Nasdaq Composite took it's worse tumble ever. The company announced a 10% share buy-back program because ISYS is convinced that the share-price is undervalued. With about 8.75 dollars per share in cash and still healthy profit and revenue growth I agree with the company's opinion.
(targetprice is $35)
VDX (Vendex KBB)
Vendex KBB is a dutch retail company traded on the Amsterdam Exchanges. The company has a multi-billion dollar revenue, steady profits and is good positioned for the future. Vendex KBB is now valued at 8 times the annual profit and has a dividend pay-out ratio of 3.8%. Vendex KBB is a good buy for the longterm portfolio as it is a solid company with solid revenue and growth.
(targetprice is €22.50)
TP (TNT Post Group)
TNT Post Group is one of the 4 largest postal services. The company came to life after a merger between TNT and the Dutch Postal Service. Due to the highly priced Internet / e-commerce stocks there is a bigger demand for quality stocks that will make money from e-commerce activities. E-commerce revenues will continue to grow fast and the TNT Post Group is one of the parcel carriers that will provide the transportation of goods bought on the Internet. I think the TNT Post Group will continue to show double-digit revenue / profit growth
(targetprice is $30)
ABN (ABN AMRO NV.)
ABN AMRO is one of europe's largest banks. This Dutch company made a considerable amount of money in de first half of 1999. At the current price of 21 dollar the price earnings ratio (P/E ratio) is about 10. This is very low when compared to other banks world wide. Also ABN AMRO said that there will be faster future growth. This solid company is a safe investment for the long term.
(targetprice is $30)
SAP (SAP Aktiengesellschaft ADS)
SAP is one of europe's largets software makers. It is a competitor of companies like J.D. Edwards, Peoplesoft and Oracle. SAP produces ERP and E-commerce applications. In 1999 the software sector in which SAP operates had a slump. However SAP managed to fuel Q4 '99 profits by 25% compared to Q4 '98 and 150% compared to Q3' 99. The opinion of annalists is that the ERP sector will see a great recovery from it's 1999 slump. I think SAP is in a great position to fuel it's profit growth in the current market upturn. However, thanks to the recent sentiment in technology stocks SAP lost almost 45% of its value. At $45 I think SAP is a buy.
(targetprice of $60 has been reached)
AHO (Ahold N.V.)
Ahold is one of Europe's largest supermarket retailers. Although the financial markets think that Wal-Mart (WMT) is going to win marketshare from Ahold in Europe, I do not believe that this is possible without the help of Ahold. Simply because Europe's (conservative) consumers will go to the stores they have always known. I think therefore that Ahold and Wal-mart will either start a joint venture or Wal-Mart might even do a bid on (part of) Ahold.
(targetprice of $30 has been reached)
Informix is a good and healthy company which builds E-commerce applications and Database software. However a couple of years ago IFMX did some illegal bookkeeping and that hurt investors confidence badly. The stock lost almost 90% of it's value to $4. Now trading slightly above $4 I think the stock is a bargain. The recent profitwarning does mean investors have to be patience.
(targetprice is $10)
Wrote by Gert-Jan Holstege. Stock Guide 2000.