OFF TOPIC
Hi Kel :o)
Hope you've been well. Yes, I stocked up on POWI at $40 1/2 yesterday, I just couldn't wait to get some more. It ran away from me last year before I had a chance to get enough. I think it is very comparable to SMTC in terms of company position, but earlier in the growth cycle.
I have very high expectations for POWI, which is why I was willing to pay a premium (PE is 50, compared to others its lower, but thats still a premium in my mind).
Turning POWI into a $10B company from its current size of $1B in a period of 5 years is VERY reachable, possibly sooner if the current boom continues. POWI looks like a 10-bagger to me Kel, especially if you are in it for the long-haul.
Some numbers :
SMTC vs. POWI
PE 71 vs. 52
ROE 29 vs 38%
ROA 25 vs 28%
margin 16 vs 28%
institution 86 vs 45%
There's nothing but respect in me for SMTC you know that, but look at the numbers, POWI has SMTC beat. That is a VERY hard thing to do, SMTC kicks ass!!! I think that speaks volumes for POWI, toss in the fact that the institutions are still not thick in POWI, and I think POWI can perform at least as well as SMTC based on current business conditions.
The technicals look good, at least as far as technicals can look good at these price levels. I see POWI as the clear leader in their field, holder of awesome patents, and in a high-growth market.
You would have to consider that you are buying another analog company, but if you believe in the growth of power management like I do, then that only means you win twice instead of once. You would be susceptible to larger swings, but if you held through the last industry downturn you know the reward it yielded.
YEAH, I'd recommend POWI, that's basically the short version. I made a couple of posts on the POWI thread, if you want to take a little closer look at what I'm thinking Kel. Otherwise, best to you, take care :o)
Conservatively I see POWI sitting at $50 to $60 in five years, after going through three 2:1 splits. that would amount to about a 10-bagger over 5 years. I'm in it for the long-haul ...
Regards, JB
P.S. I am glad I did not wait for a confirmation from John, hehe, very glad. |
