BlueStone Capital Partners Announces Investment Opinion on Comdisco Inc.Business Editors NEW YORK--(BUSINESS WIRE)--April 28, 1999-- BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Reiterates BUY Recommendation for Comdisco Inc. and Increases Target Price to $36 Senior Analyst, Steven Jaworski at BlueStone Capital Partners, L.P. reiterates his Buy recommendation and increases the target price to $36 for Comdisco Inc. (NASDAQ-CDO $28 1/8). Analyst Summary -- Comdisco reported net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $40 million or $0.25 per share for Q2 FY99 vs. $37 million or $0.23 per share in the prior year period. Revenues of $949 million, representing an all-time record, were %22 higher than the $777 million recorded in Q1 FY98. The company recorded a one-time, pre-tax charge totaling $150 million related to the previously announced divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of low-margin businesses and the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of the services business. Including these charges, Comdisco incurred a net loss of $56 million or $0.37 per share. -- The upcoming divestiture of the low margin medical devices and mainframe leasing portfolios will help boost margins going forward. -- Leasing backlog remains extremely strong. Non-leasing businesses continue to gain momentum. -- The company announced that it will accelerate the nationwide roll-out of Prism Communications Services' low-cost DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary services. Comdisco expects that Prism will be able to reach approximately 4 million small and mid-sized businesses by January 2000. We believe Prism is worth at least $17 to Comdisco shareholders. -- We have increased our price target to $36 based on $19 for the core computer services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. business (16 times our FY2000 estimate of $1.16) and $17 per share for Prism Communications. BlueStone Capital Partners, L.P. is a full service investment banking and brokerage firm that delivers financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to emerging growth and medium size companies worldwide. BlueStone Capital assists Clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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