30's is strong resistance, and the trailing p/e would drop to around 65, so that would present a very attractive opportunity. It would roll back all gains from the last 12 months.
However,
Someone on the yahoo thread mentioned stock buyback. From the sec filings, the company is authorized a stock buyback and as of Dec 99 they have only exercised a small portion of that
In August 1998, the Company's Board of Directors authorized the repurchase by the Company of up to $100 million of its Ordinary Shares. As of December 31, 1999, the Company has repurchased 2.8 million Ordinary Shares for $28.4 million.
Their previous purchases averaged $10 per share, which 2 splits ago would have been $40. If they have not exercised since then, which I doubt if they have, that means they can still repurchase up to 75M worth, and the stock is again approaching $40, so one can assume the directors would be looking at tht option.
If the stock broke 40, I would assume that the company did not think it worthwile to repurchase, and all confidence in this stock might be gone, which means you're looking at mid-teens. |
