Dale, I agree this next report is key, especially since revenue was delayed from the third quarter into the fourth, which in any case is always LPAC's big one. As I recall, LPAC does not normally pre-announce its earnings date, but last year they reported on March 21, and they have consistently reported quarterly results within a window of 7 to 11 days prior to the statutory date (March 31 in this case).
I am expecting (hoping for?) $.40 to $.50 for the fourth quarter. This would be about flat with last year, with diversion of third quarter business offsetting the negative impact of the new equipment.
If I'm right, I expect we will see some significant action in LPAC over the next few months, reminiscent of the action back in 1999. That kind of fourth quarter will cause LPAC to start popping up on all sorts of value screens, since it would give us a PE of around 4. In fact, LPAC's price would be only 40-50 cents more than total EPS for the last three years. And this for a company that has been, and remains, a leader in a field that is certainly poised for huge growth.
If I'm wrong, I'll have to reassess my thinking. But for the moment I see nothing in LPAC's financials or strategy or execution that give me any pause.
I don't know that we will be seeing prices like 15 again any time soon, but I'd be quite pleased with a run into the mid single digits ;-)
Regards,
Fund |
