Sa,
Not to rain on your parade, but maybe you're the one who has
"a lot to learn about how the market works". =-o Why can't DSC
hit $28-30 this week? Maybe not a sure thing or even real
likely. How can you say, though, with such confidence that it
won't be there this week? High today of $26 1/2 is only $1 1/2 away
from $28, and it's only Tuesday!
This is clearly a cross roads for DSC, with many indications that
the turn around is well under way. Using estimates of $.90 for this
year, $27/shr yields a current pe of about 30. With a theoretical
share price of $40, using the consensus estimates for the coming year
of $1.39, that yields a forward pe of just over 28. Now, if the
earnings estimates are adjusted upwards much at all, to say $1.60,
that yields a forward pe of merely 25 (w/ $40 shr price). Another
contract win or two, along with a good quarter or two, and we're
off to the races.
So, I don't see $40 that far out of the realm of reality at all. As
a matter of fact, I'd be real surprised if we don't see $40 by
Christmas, maybe earlier.
Course these are all my opinions, which could be all wrong. I don't
think so, though.
Good Trading All,
John Dodson |
