Mucho, let me say that I don't know mucho mas about SDLI. However, just glancing at the numbers, I see a forward p/e of 234, and an expected growth of 128% this year, which would just match the s&p's average peg of 1.8. That's a lot of growth to expect. However, I also note they've been growing at those kind of rates, so perhaps they can maintain that for a while, although a lot of its future seems to be priced in.
I also note that a substantial (though decreasing, presently 17%) portion of their business is from the government, and that always raises questions about its continuity, and governmental cost/profit controls.
That having been said, this company seems to be well positioned in the fiber market, and I will look for an entry point on a healthy pullback. Don't know enough about it to short it or buy puts at these levels, and I don't trust TA enough to go on that basis only. |
