Yahoo analysis, together with growth valuation of the CUBE semi shares:
messages.yahoo.com
Valuation
by: kedjad 10/27/1999 10:15 pm EDT
Listened to conf call ..thoughts on valuation : No idea of value of HLIT, but if @ 60, .54 share is $32.40, if @ 65, .54 share is $37.80.
On semi business, in conf call new CEO said current years semi sales would be 240-250 mil, that sales were accelerating, and that growth in excess of 40 percent should be expected for several years. Also new semi co would have over 150 million in cash at spinoff. Also confirmed that gross margins should be 58 percent and net operating at 38 percent. using 40 percent growth on about 250 mil in sales results in sales at 490 mil in 2 years and EPS of about $4.00. With P/E of 20, value of semi co is 80, if P/E is 30, value rises to 120. With expected current years EPS in semi of $2.05, current value with P/E of 20, results in current value of semi of 41.
Added to 32-37 value depending on share price of HLIT, I arive at current valuation of 73 to 78, with good prospects for even highe P/E in equation if semi business will be growing at over 40 percent.
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