Since, ELON and WIND are in "complimentary spaces" of the
smart device market, I think it would be worth doing some
comparative valuation of the two companies. In part one I
will give you some comparative historical numbers. In part
two I will submit some brief newbie gorilla talk concerning
the two companies going forward. Feel free to rip me. In
the interest of full disclosure, I am long both WIND and ELON.
Part One, Comparative Historical Numbers
WIND ELON
Market Cap 2.04 B 2.95 B
Price to Sales (TTM) 11.92x 79.88x
Trailing 12 mo revs 171.11 M 36.93 M
Trailing 12 mo Net Inc. 22.47 M (4.4 M)
5 Year Rev Growth Rate 36.5% 22.8%
YOY Rev Growth Rate 30% 23.5%
12 mo trailing PE 92x NM
12 mo EPS .61 (.13)
Gross Margins 81.5% 60.5%
I could go on with the numbers, but the general idea here is
to highlight the large discrepancy in market cap Mr. market
is currently rewarding ELON when related to
historical performance, i.e., revenues, earnings and
growth. But we are interested in the outlook going
forward, not the past, so in part two, I will try to
contibute something to the outlook for these two fine
companies going forward using the FM. Of course I will
invite critical feedback. And again, I am long both of
these stocks.
Sources: Provestor Reports, Equity Digest Reports, Charles
Schwab Company reports, Reports directly from WIND and
Janet's ELON Project Hunt Report. Full Disclosure: As was
the case with Janet's report, most of the ELON figures are
through September 1999. Provestor and Equity Digest have
not updated yet for the final quarter of fiscal 1999 for
ElON. In addition, WIND's numbers do not include the
numbers from the number two player in the space they
recently acquired, ISI.
Thanks again for your excellent report Janet!!!
Best Regards, Huey
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