SMALL CAPS
HOM / PRLS
I purchased a couple of small caps this morning. Both had a very strong quarter with significant growth, but are still traded at reasonable multiples (about 16X of 06EPS). Both have a market cap just over 100 million. If they can deliver Q4/05 and a decent outlook for 06, I would expect the multiple to expand to 20X. I first looked at PRLS when it was traded at 5.0 and never pulled the trigger. And now I have to pay 3.0 more. PRLS is rather volatile but HOM is a real sleeper.
I purchased a couple of small caps this morning. Both had a very strong quarter with significant growth, but are still traded at reasonable multiples (about 16X of 06EPS). Both have a market cap just over 100 million. If they can deliver Q4/05 and a decent outlook for 06, I would expect the multiple to expand to 20X. I first looked at PRLS when it was traded at 5.0 and never pulled the trigger. And now I have to pay 3.0 more. PRLS is rather volatile but HOM is a real sleeper.
posted by ZIGZAG at 12/04/2005 10:28:00 PM
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