o.k. I give up. Another dot.com stock! Yet it DOES fit our criteria and the value/growth is quite nice imho.
Websense apparently confirmed bullish estimates on the upcoming second quarters and Motley Fool reported that the stock was moving up because of a 'short squeeze'. That occurs when people who are negative sell a lot of shares 'short' in anticipation of a drop in the stock and are then able to buy it back later at a lower price and thus a profit. A squeeze is a panic, that forces short sellers to buy shares back as the price mounts and their losses grow. O.K. that is enough for basic education on this site!
Websense had a great day today closing at $20.26 up $4.64 or 29.71% on the day! Wow! The stock trades with what appears to be a very reasonable p/e of 20.03. According to Yahoo, this San Diego, California based company has a smallish market cap of $341.8 Million with 21.9 million shares outstanding and 21.7 million shares float.
On April 22, 2002, WBSN reported their first quarter results for the quarter ending March 31, 2003. Revenue was a "record $18.5 million, an increase of 42 percent from the $13.0 million reported in the first quarter a year ago." according to a Business Wire report recorded on Yahoo. Net income for the quarter was $3.9 million or 17 cents per diluted share, compared to net income of $2.7 million or 11 cents per diluted share last year.
Websense, per CNN.Money, "...is a provider of employee Internet management products that enable businesses to monitor, report and manage how their employees use the Internet."
Looking at Morningstar.com, we find a beautiful picture of revenue growth, starting with $5.0 million in 1997, $6.9 million in 1998, $8.6 million in 1999, $17.4 million in 2000, $35.9 million in 2001, $61 million in 2002, and if we extrapolate the current quarter of revenue reported above without any growth we would have about $74 million in 2003. Very nice!
By the way, I do not own any shares of this issue, but would not be adverse to adding some to my portfolio in the near future.
Morningstar also shows a dramatic improvement in free cash flow from $6 million in 2000, $19 million in 2001, and $31 million in 2002.
This company, per Morningstar, is sitting on loads of cash with $151.2 million in cash and $26.3 million in other current assets, compared with $59.6 million in current liabilities and $17.2 million in long-term liabilities.
Overall, this is another BEAUTIFUL issue, reasonably priced with outstanding growth characteristics. I like it a lot and don't be surprised to see this added to my trading portfolio if I get a chance!
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