UNDERVALUED STOCKS Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : UNDERVALUED STOCKS

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Eric Jacobson who wrote (168)	8/16/1997 7:49:00 PM
From: Grommit	of 580

CTI follow up. Applying the current PE of 16.5 to the $1.53 yields a target price of $25. Applying the projected growth rate of 20% to the $1.53 yields a target price of $30. I think you are double counting. I get the following for present status -- $19 price / EPS 1.24 = PE of 16.4 Industry PE is at 15.7 but CTI has been growing EPS at 23-25% compared to industey at 11-20% EPS growth. So they should be at a premium if the track record holds. (from Zacks) In 2 quarters, EPS is fcst to be $1.24 So at 16.5 - 18 PE target price is $20 1/2 to $22. In 4 qtrs EPS should be $1.40. Times 17-18 PE and we get $24 to $25 per share. This is a $25/$19 return or 30% for a year. Respectable return for the risk level, I think. I see no red flags in the annual report or 10K. Will prob not hop on, however, since 30% is under my hurdle. Grommit (I did notice a lawsuit which ticks me off: Soccer goal posts donated in 1993 resulted in legal liability due to accidental death. They say it is being appealed and the financial liab is covered. You wonder why most people think attorney's suck?) I think it will be intersting to go thru these postings down the road to see how accurate all our predictions and guesses are.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next