Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?Micros Systems (NASDAQ: MCRS) is
a leading developer of enterprise applications designed for the hospitality and specialty retail industries. The firm provides hardware and software for point-of-sale and operational applications, as well as back office programs for inventory, labor and financial management needs. The systems operate locally and across the enterprise, allowing management to analyze demand through detailed tracking of inventory, orders and reservations. Marriott International (NYSE: MAR) is a major customer.
The firm pleased investors last week, when it reported fiscal Q2 EPS of 68 cents and revenues of $244 million. Analysts had been looking for 61 cents and $220.7 million. Management also guided Q3 EPS to 63-67 cents (65 cent consensus) and Q3 revenues to $228-$232 million ($229.83M consensus).
The stock
popped on the news and has since settled into a bullish "pennant" consolidation pattern. Equities frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with five "strong buys", one "buy" and four "holds". Analysts see a 19% average annual growth rate, through the next five years. The MCRS Price to Book ratio (4.36), Price to Free Cash Flow ratio (19.55), Sales Growth rate (28.49%) and EPS Growth rate (54.55%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $25.13 and $37.49. A stop-loss of $28.90 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in the stocks mentioned above.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
