Wizard, you have my point exactly...Factually, DPMI has been reporting Sales Growth, --and SIGNIFICANT Sales growth -- as high as 39%, quarter over quarter, for at least the last four quarters, per the Forms 10Q filed with the SEC...and the analysts are projecting INCREASING SALES GROWTH over the next two years as the semiconductor industry resumes it's upcycle. A quick check of the analysts via Yahoo shows a (calculated) rate of (earnings) growth around 21%, and projected higher.
Now, since I want to analyze this stock for it's PROSPECTS, it seems to me that I would look that those projected earnings next year ($2.60), and assign a REASONABLE PE multiple to get a RATIONALE, UNBIASED valuation for the stock. Would you think, given the recent sales growth, as reported to the SEC, and the projected double-digit earnings growth going forward, that a PE between 25 and 40 might be acceptable, given DPMI's acknowledged GROWTH status in this sector?
To be VERY CONSERVATIVE, I would look at a 25 PE and come up with a valuation of $65/share.. And I would be highly SUSPICIOUS of lower valuations!! (Like, are we talking to Short Sellers, or What??!).. After you have looked at those last four, consecutive quarters of earnings growth, Wizard, and checked the projected earnings increased over the next two years... give me your assessment.. Always nice to have someone who honestly looks at the FACTS..and gives a REASONED opinion...Thanks! The Saintly One.. :-) |
