Baldwin,
<< by the way......when would TLAB be required to warn about 1st quarter.....now? or much later in the present quarter? >>
I think it's good that they guided lower now than later with the stock at $80, possibly. I'm listening to the conf call replay right now, and while they may have been late or not as sharp as they "should" have (like the side-product to the DXX product which they said was late), I think there is enough good things to build on, there is room for improvement and upside surprise, IMO.
This company has 30% operating margin, good R&D, committing resources to sales support and customer service. They increased headcount by some 40%, they are expanding facilities... they did not do that only to lose it all now going forward...
Overall, earnings could grow 25% in 2000 (maybe more), with revs up 30%+. This is about double than the S&P 500. TLAB financials and margins are above average also, yet the P/E is currently less than double than the SP. I think TLAB has relative value to offer at $60 and lower.
I'm long since summer '98 and holding on. We are probably presented a buying opportunity around here, especially in the low 50ies, IMO.
kind regards,
Thomas |
