VSH, KEM, AVX Soaring Earnings, priced at decent multiples
Although KEM (AVX and VSH all earnings plays) did move up in anticipation, it gave back most of the gains. VSH reporting this morning (Thursday before the open) barely enjoyed any anticipation being caught up in the maelstrom of dropping prices that did not distinguish between "blimp" or "skinny minny" stock.
AVX with a PEG of .03! 300% eps growth! upgraded from .81 to .91 cents this quarter.
I'd rather take a second look at stocks like KEM, AVX and VSH than get aboard the spiraling down staircase of the overvalued blimps. Even if we hold for a 'long term daytrade (for at least 30 minutes up to a few hours)for the 'beef' of the trade and not 5 minutes in trepidation, we still should be choosing the best ones. If we want to go back to swing trading real stocks and not just options that although give fantastic returns, are not assets, we need the ones with upside potential and not the new epoch of overvalued, overextended companies that have totally disenchanted investors. Investor sentiment is no longer with the LU's, the DELL's, the JDSU's, the AMCC's... we can see that in shorting all the rallies or the very least the taking profits at every 1-2 hour rally (1-2 days if we are very very fortunate)
Daytraders, long used to this disillusionment (actually profit from it) are ho hum to these rallies, but newcomers to the ranks are being 'cut off' at the knees by buying 'bargains' or calling bottoms which in reality are only false bottoms and like a Limbo pole an easily be adjusted lower, and lower...
VSH at a 73% Discount PE Multiple of 7.1 X, vs. the 26.1 X average multiple at which the Semiconductors SubIndustry is priced.
Valuation for VSH year 2000
VSH has a P/E of 7.1 times earnings and what's even more unusual is that its PEG Ratio is .02 (below 1 is considered undervalued, this valuation of .02 is undervalued to the extreme)
Earnings Estimates for VSH for 2000
Q1a $0.56 vs. $0.12 366.7%
Q2a $0.96 vs. $0.16 500.0%
6 mos. $1.52 vs. $0.28
Q3e $0.97 vs. $0.20 385.0%
Q4e $1.03 vs. $0.28 267.9%
KEM Trades at a 75% Discount PE Multiple of 6.6 X, vs. the 26.1 X average multiple at which the Semiconductors SubIndustry is priced. A P/E of 6.6!
Earnings estimates for KEM 2001
Q1a $0.90 vs. $0.06 1,400.0%
Q2a $1.08 vs. $0.12 800.0%
6 mos. $1.98 vs. $0.18
Q3e $0.94 vs. $0.22 327.3%
Q4e $0.94 vs. $0.44 113.6%
AVX trades at a 77% Discount PE Multiple of 7.3 times, vs. the 31.6 times average multiple at which the Electronic Components & Parts SubIndustry is priced.
Earnings Growth for AVX for 2001
Q1a $0.68 vs. $0.10 580.0%
Q2a $0.89 vs. $0.15 493.3%
6 mos. $1.57 vs. $0.25
Q3e $0.91 vs. $0.23 295.7%
Q4e $0.94 vs. $0.39 141.0% |
