Justifying Kalamazoo's sky high rating -- at 80.5p, over 80 times this year's forecast earnings - would stretch the rhetorical faculties of the most seasoned secondhand car dealer. The bull case is based on an upswing in sales of its software, which interfaces between car dealers and manufacturers. That's not due til late 2000.
On forecasts of pounds 1m pre-tax profits this year and earnings of 1.1p per share, rising to pounds 2.3m and 3.1p in 2001, the rating further out is less stretched. But the Internet has thrown into question the future of the forecourt and given the uncertainties investors should take profits.Reuse content