You are right in assuming that I haven't done any study on MEUI.
The only thing I know is that their revenue last quarter was
approximately $450 mill, up 13% from previous quarter. Thus
they are trending towards a $2b /per year. Their P/E reflects
their promise.
I did talk with the director of investor relations once. They
have three divisions. The PC division may be the size you are saying.
The second division is contract manufacturing that is expanding very
very rapidly. (If memory serves me right, they will manufacture for
anybody, but Apple and HP/Sun come to mind - don't quote me, check
it). The third division is "refurbish". Where they work with with
partially working, rejects, etc and fix them for manufactures.
The growth of the first two divisions is continuing. There may be
some questions about the third division (which accounts for 10%).
Once upon a time (when the stock was only $10+), I had considered
buying into it, but chickened out since it did not fit my value
based strategy (darn!).
There is only one thing I have againt MUEI, actually it is something
I have againt MU:
A subdivision making PCs is a great idea, fits with vertical
integration philosophy; but a publicly traded company in which
they own 80% doesn't make sense. It says that some day they
may spin it off.
As separate companies they are now separated by laws. Together,
they could have wonderful synergies. |
