Stock Watch

Global Imaging Systems: Astute Acquirer

Global Imaging Systems (GISX) helps small and midsize companies run like a well oiled machine. The company distributes and services copiers, printers, fax machines and other office equipment. It also designs and installs computer network systems.

Thanks to a healthy balance sheet, Global Imaging has been able to make several shrewd acquisitions. Since the firm's inception in 1994, it has purchased about 60 other companies -- last year alone, it added six. This has helped increase its customer base and fatten its financials.

Value Line says Global Imaging's revenues should continue to receive a boost from acquisitions and improving corporate spending. But excluding acquisitions, Value Line still expects the firm's top line to swell, helped in large party by a stellar reputation. Customer retention is consistently above 90% thanks to its quality products and timely service.

The stock trades at 14 times 2004 consensus earnings estimates of $2.02 per share. That's reasonable considering analysts expect profits will grow 18% annually for the next few years. For rivals Ikon (IKN) and Xerox (XRX), analysts anticipate only 10% growth.

--Erin Burt

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