Thanks Andre!, I hope it gets answered.
Cordob, I don't know what to suggest, I bought in when revenues and EPS were growing together at a 40% clip and looked sustainable. I managed to get in at a reasonable PE valuation. Now, from what St. Dennis told us tonight, (the last question of the CC related to future sales growth) we're going to achieve 30% sales growth, earnings be damned (Fiddler is no longer concerned with growing earnings at the expense of top line growth)
Now perhaps you can help me...is a stock trading at a multiple of 105x trailing earnings, forgoing earnings to fund an expected sales growth rate of 30%, a good investment??
On the other hand, if the embedded market explodes as I think it will, and WIND achieves sales of $1B in two years, then hell yeah, I don't mind paying 105x earnings for that kind of growth. BUT that isn't what St. Dennis is telling us..IS IT?!?!? What gives?
Makes my core holding, Bombardier, look positively smashing.
Mature conglomerate, maker of planes, trains, and automobiles. Management forecasts 25% annual growth for the next 5 years while maintaining 20% growth in EPS. Trades at 30x trailing earnings. Splits every couple of years with a 1% dividend to boot.
Helps me get to sleep at night! ; )
Rinks
ps. I realize I've posted some negative thoughts tonight re: WIND and if LONGs think I'm flaming the stock, I'm not. I own WIND, but confused, as you can tell. If anyone can shed light on my concerns or misconceptions, I welcome them. |
