18.03.2004
transtec turnaround complete
AC Focus Money: kaufen
The investor magazine "Focus Money" recommends to start building initial positions in the shares of transtec (ISIN DE0007241424/ WKN 724142).
transtec is a classical turnaround stock. The good thing is that the company have already completed their turnaround, but the market is only just starting to notice. The Tübingen-based company are building servers and super-computers according to the special needs of their customers. Thus the general reticence in IT spending during the last couple of years did not leave the company unaffected. In spite of this, transtec managed to achieve positive earnings of 200,000 EUR for fiscal year 2003. Sales declined by 30% to 80 million EUR due to the withdrawal from several business segments.
Even though transtec's share price soared during the last week, the stock continues to be very attractively valued. At share price levels of 6 EUR, transtec's market capitalisation amounts to a mere 22 million, of which 8 million EUR alone are covere d by cash. Furthermore, the partnership with GrenkeLeasing should provide additional stimulation. transtec should reach a wider circle of customers by offering financing for their products as well. If the economic development continues to be favourable, the transtec stock's valuation should double in the intermediate term.
With this background, the investor magazine "Focus Money" recommends to build positions in the transtec shares. Stop-loss limits should be placed at 4.90 EUR.
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transtec turnaround complete
AC Focus Money: kaufen
The investor magazine "Focus Money" recommends to start building initial positions in the shares of transtec (ISIN DE0007241424/ WKN 724142).
transtec is a classical turnaround stock. The good thing is that the company have already completed their turnaround, but the market is only just starting to notice. The Tübingen-based company are building servers and super-computers according to the special needs of their customers. Thus the general reticence in IT spending during the last couple of years did not leave the company unaffected. In spite of this, transtec managed to achieve positive earnings of 200,000 EUR for fiscal year 2003. Sales declined by 30% to 80 million EUR due to the withdrawal from several business segments.
Even though transtec's share price soared during the last week, the stock continues to be very attractively valued. At share price levels of 6 EUR, transtec's market capitalisation amounts to a mere 22 million, of which 8 million EUR alone are covere d by cash. Furthermore, the partnership with GrenkeLeasing should provide additional stimulation. transtec should reach a wider circle of customers by offering financing for their products as well. If the economic development continues to be favourable, the transtec stock's valuation should double in the intermediate term.
With this background, the investor magazine "Focus Money" recommends to build positions in the transtec shares. Stop-loss limits should be placed at 4.90 EUR.
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