Imo, these undervaluations can remain that way for a long, long time.
Maybe it is that people recognize that there's a shortage, but believe it will be alleviated by year end. Seems like some electronic contract manufacturers are saying that (??).
Is it possible that design engineers, recognizing a shortage, are designing around tantalum caps (requiring fewer or none), and that this is facilitated by newer generations of products which because of their smaller size, require fewer capacitors?? (I'm just wondering - I'm not knowledgeable or technical.)
While a pe of 35 would be great, imo, a more realistic pe might be 10-15 for something perceived as a commodity or on the lower end of the technical spectrum. (And I mean no slur to the people making these caps - I figure it's a specialized business requiring strong technical expertise itself.) To me, that would still offer a decent price appreciation from here.
Paul S.,
who has been wrong many, many times in his opinions and his stocks. |
