Inter@ctive Investor: VA Linux finally shows signs of lifeAug 25, 2000, 20:50 (3 Talkback[s])
(Other stories by Larry Barrett)
[ Thanks to www.linuks.net for this link. ]
"VA Linux won back some fans on Wall Street this week with its impressive fourth-quarter earnings report. While it appears to have some momentum and has carved out a nice little niche for itself, investors shouldn't expect a miraculous recovery anytime soon. That's not to say VA Linux can't be a fine investment, short- or long-term. Those who believe in the Linux operating system will undoubtedly take a second look at VA Linux considering it's trading at an 85 percent discount from its all-time high of $320 a share."
"WR Hambrecht analyst Prakesh Patel upgraded VA Linux to a "strong buy" and predicted the company would reach profitability by the end of calendar 2001. "We believe that the current valuation of VA Linux systems does not reflect the company's solid progress and renewed positive outlook," Patel wrote in the report, which placed a 52-week price target of $60 on the stock."
"CS First Boston analyst Amit Chopra reiterated his "buy" rating on the company and set a 12-month price target of $65 a share. He also raised his 2001 revenue forecast from $271 million to $323 million, changing the EPS estimate from a loss of 44 cents a share to a loss of 26 cents a share. Investors who believe in the Linux craze might want to hedge their bets a bit just in case VA Linux continues to execute as well as it did in the fourth quarter."