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Re: SSKILLZ1 post# 37977

Thursday, 03/16/2006 12:03:44 PM

Thursday, March 16, 2006 12:03:44 PM

Post# of 174020
Sskillz, here's an interesting comparison between AUTO and USOO.

AUTO just reported its FY05 results; pretax income was 0.063/fd share (untaxed) At current price of 0.80, that would give a PE of 12.7x.

USOO, if looking at TTM pretax income adjusted for the lawsuit expenses/income, has reported untaxed 0.26/fd share. That would yield a PE of 5x.

The PE valuation disparity is tremendously in favor of USOO. AUTO appears fairly valued to me based upon adjusted net earnings, but revenue growth is a bit stronger.

Full disclosure: Long USOO
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