Wow, you have given me some tough questions to answer. I feel like I'm back in school and taking my finals. <ggg>
First P-1 has been a major player in the power supply business for many, many years. This goes back to the 80's. Always had a good reputation. The hyper growth is tied into the telecom market. P-1's recent acquisitions were companies that had products keyed to the telecom markets. As you know, the telecom business in experiencing hyper growth. I believe P-1's growth will be ok as long as telecom is ok. Here's an example, if my memory is correct, Csco is P-1's largest customer, accounting for approximately 13% of sales. However, P-1's relationship with Csco goes back to the late 80's. You can see the P-1 has some loyal customers.
The core management team has been with the company for many, many years. Most have been their since the 80's. For example, Goldman (CEO and Chairman) joined the company in 1981 or 1982. He's a very sharp guy, has a vision, and is responsible for the growth and direction of the company for the past 10 years. So, this is not a "fly by night" operation. Is the company perfect, no. However, show me any company that is perfect and without its problems.
I'm certain that Goldman's mission is to make P-1 the industy leader, especially in the rapid growing segments, ie, telecom. Will the company be successful going forward? Since my crystal ball is as good as your, I really can't answer that question. However, I for one am betting that they will. Their past track record is very good.
As far as the stock's future performance, and whether one should buy, hold or sell...well, I don't given advice in this area. The actions of the market are keyed to the performance of the company, however, I think we can agree that at times the performance of a company's stock has nothing to do with how the company is doing. IMO, the stock will continue to appreciate as long as P-1 makes it's numbers and is perceived as a growth company. However, I can't see the stock climbing at its present rate, nor do I think it will go up "forever". Factors such as PE, PEG, etc, need to come into play. One thing I do see occurring, and that is, there will be more splits in the not to distant future.
Well, that my story for now. Let me know if you have any other questions.
Stock Bull |
