Hello friends! As always, it is nice to have you back visiting. If you are new here, please feel free to explore the past posts on this site. I must continue to tell you that this is a diary of my interactions with the market. Stocks I like and am thinking about buying and selling. Please consult your own financial consultant as I am just an amateur who likes to write and comment on the stock market!
I am going to try to take us International again today. I have an ADR that I just came across that is based in France yet fits my criteria for great numbers. I do not own any shares of BOBJ. Yes, Business Objects, an ADR, symbol BOBJ, is the one I want to look at today. According to money.cnn.com, BOBJ "...develops, markets and supports integrated enterprise decision support software tools that allow non-technical end users to access, report and analyze information in relational databases." BOBJ is having a very nice day today trading at $32.15, up $3.48 or 12.14% on the day.
Yesterday, after the close of the NYSE (4:07 pm ET), BOBJ reported results for the third quarter and they were very nice. As reported on BUSINESS WIRE and picked up by USA TODAY online, third quarter revenues for the quarter ended September 30, 2003, were $129.1 million, an increase of 18% over revenues of $109.9 million in the prior year. Net income was $10.8 million, or $.17/diluted share and ADS, up 122% (!) compared to net income of $4.9 million or $.08/diluted share and ADS reported in 2002. However, it was noted in the report, that last year's results included a $3.3 million non-recurring expense, so maybe the results which were solid weren't quite as spectacular.
Looking at Morningstar.com for some past results, we find that revenue for BOBJ has grown nicely in the recent years. In 1998, BOBJ had $166.9 million in revenue, $241.6 million in 1999, $348.9 million in 2000, $415.8 million in 2001, $454.8 million in 2002, and $483.6 million in the trailing twelve months.
During this time, earnings/share have grown from $.19/share in 1998 up to $.60/share in trailing twelve months.
Free cash flow has improved from a solid $55 million in 2000, $55 million in 2001, $57 million in 2002 to $64 million in the trailing twelve months.
Balance Sheet on Morningstar.com looks fabulous: $363.0 million in cash, more than enough to pay off the $215.1 million in current assets and $7.5 million in long-term liabilities combined. In addition, BOBJ has $129.8 million in other current assets.
This is not a SMALL company as it has a market cap of 2.03 Billion, NOR is it CHEAP: p/e of 46.69, PEG ratio of 2.69, and price/sales of 3.61. There are 63.24 million shares outstanding and 61.40 million of them that float. There are 5.36 million shares out short representing 6.05 trading days of volume as of 9/8/03. No dividend is paid. Last stock split was a 3:2 split in March, 2001.
This company is doing GREAT. However, with the p/e a bit rich, and PEG over 2.5, this is NOT cheap. I am not in a hurry to pick up any shares of this stock...but certainly need to keep it on our horizon! If you have any questions, comments, or words of encouragement, leave them right here by clicking on "no comments" below each post....or email me at bobsadviceforstocks@lycos.com!
Bob