LINK Long - this one should breakout soon
Interlink Electronics, Inc. is engaged in the development of intuitive interface technologies and solutions for a variety of business and home applications. Its products enable a user to control and communicate with various products such as digital set-top boxes, digital televisions and other electronic products (collectively, appliances) by providing an intuitive device on which the user can remotely input a variety of commands.
Market cap is 86.4 million
cash is 1.14/share
price/sales is 2.86
debt/equity is .21
last 4 quarters EPS (latest first)
+.05, +.14, +.07, +.06
Last 2 quarters had nice upside surprises.
From last earnings report april 16:
"Slowing economies and adverse market conditions worldwide impacted the performance of our OEM businesses this quarter,'' said E. Michael Thoben, chairman, CEO and president, Interlink Electronics, Inc. ``Our previous guidance reflected this downturn. We are confident that, as a more positive economic climate returns, our leadership position in the Business Communications market, together with our early market penetration and strong product offerings within the E-transactions opportunity, will reset the stage for accelerating revenues and earnings growth.''
The company's financial position remains strong: maintaining a cash surplus of more than $10 million. Both accounts receivable and inventory showed improvement from year-end and no additional debt was incurred. Management's proactive cost reductions in Q1/2001 reduced operating expenses by 4% from the previous quarter without compromising sales and marketing programs and efficiencies."
Also, there is insider buying:
"May 8, 2001 LINK announced today that members of management and its board of directors have purchased 1 percent of the company's common stock.
All of the outside directors participated with the executive management team in the purchase. The average purchase price for the stock was $6.86.
``At the company's current market valuation, it would appear little value is being given to the potential of our two new emerging market segments: eTransactions and Broadband Home Entertainment,'' said E. Michael Thoben, chairman, CEO and president. ``Because each member of our management team believes strongly in the potential for these two market segments, we also believe that our stock represents significant value at current prices."
biz.yahoo.com
Next quarters estimate is +.09
2001 estimate is +.38
2002 estimate is +.68
Forward 2001 pe is 24
Forward 2002 pe is 13
Conclusions:
LINK is a profitable company for some time, lots of insider buying (not big shares), with very nice support in the high 8s.
Market cap is tiny, fundamentally sound, valuation very reasonable.
I expect a nice breakout in the coming weeks
Buy and hold on a medium term basis.
traderpulse.com
Michail |
