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wadegarret

08/07/05 1:31 PM

#18555 RE: tmcal6 #18553

tmca16- STV

tmca- OK. Lets completely forget the highway bill. The still to make around $1.50 pre tax going forward, and that doesen't include even one more contract all year! tmca, unless their gross profit margins were much lower than usual on the latest $135M in new contracts over the last 7 weeks, they will make at least $1.50 going forward IMO with strong growth. Now- what PE would you assign to a stock that is growing at 30% or more going forward and with a healthy balance sheet? I say a 20 PE. Therefore, if STV does come through with the $.87 pre tax they guided for, and they make at least an additional $.63 from the latest $135M in contracts, I say the stock is worth $30 not even counting any more contracts for 2005 or any additional business whatsoever from the highway bill. Wade