Hey, I don't know if I'm right or not. I could be wrong. I do expect good earnings, a cent or two above estimates. I would read the pre-14A though. Future growth is key, not tomorrow. Tomorrow is expected as is 1.20 for the year. It hasn't helped the price so far, but it certainly may see 8's tomorrow. 9's? We'll see. In the meantime, go to EDGAR. It's your investment. You should get all the info you can. Growth in earnings was 100% last year, this year is 50% if they meet 1.20. McGinnis now says 30-35% in the call. It's maturing before it had a chance to get going (the stock that is). I tell you true, if that CFO hadn't resigned in October last year, this one might be at 12 already on it's way to 15. Too bad.
Now, what am I looking for that I don't see? Growth beyond what they have expected. Again, 1.20 is slower growth (50%) than 96 (100%) and is factored in the price anyway. I need to see a reason to expect greater growth than that. I don't see it in light of the fact that they are in need of cash to grow, and that will cause earnings to suffer. Read the pre-14A. I know 50% is great growth, but it's slowing, and that's what analysts will look at. Again, I could be wrong, but that's my objective opinion. Hey, I think it's a tragedy this stock doesn't get the respect it's due. However, it's taken so long to get noticed at all, that it seems it's best growth is behind them. How long can you grow at 100 or even 50%? Why would the stock be worth more tomorrow when it's slowing today? 1.20 sounds great, but 96 came in at 80c vs 40c in 95. 1.20 is slower growth than 96. I suspect that 98 will be less than 50% earnings growth unless something changes beyond what we already know. When I see it, I'll get in gladly, but I'm not convinced at the present time. That's my opinion, I could be wrong. |
