Greenberg want a HIGHER tax rate??
marketwatch.com 2D46EC75285281%7D&siteid=mktw&
"If Omnivision hadn't sliced its tax rate, the forecasted range would be lower than the expected range. In other words, earnings might go up, but the quality of those earnings is going down "
OK, just the facts.
1- OVTI didn't slice its tax rate. It guided 2006 taxes to "low 20% range" in the April Q call. The actual number is 20%. That is about as low as the low 20s get.
2- There is nothing low quality about net income. The low tax rate (20% or less) is likely to continue for the foreseeable future. Its a permanent low rate, which is an extremely GOOD thing- why make it out to be a low quality thing? Herb prefers companies that pay higher taxes? That's just STUPID!
3- Who cares how the forecasted EPS range compares to analysts prior forecasts? Nobody like analysts anyway, right, so why is the previous forecast important anyway? OVTI had not given October Q EPS guidance previously, so since when does Herb care about what analysts forecast on their own?
4- Herb forgot to mention his previous concern (the SEC inquiry) was resolved without issue.
5- Herb forgot to mention he previous concern (lack of revenue growth) has been resolved with a forecast of over 20% sequential growth. In fact, Herb forgot to mention ANY of his previous concerns, and is now bitching because......OVTI pays less in taxes than he expected? Does this guy get paid for these articles?
6- Herb forgot to mention that OVTI generated 51 cents per share in operating cash flow last quarter.
7- Herb forgot to mention that OVTI has a share repurchase plan in place, and appears to be executing on it aggressively.
8- Herb forgot to mention the fact that OVTI is about to report a record revenue quarter while holding a PE valuation less than virtually ANY other semiconductor stock.
Herb......is wasting his reader's time.
Originally posted by Geezer31
08/30/05 07:56 am yahoo Msg: 229818 of 229905 |
