<<I was going to ask you what stocks you like now but I guess FSII is one.>>
I've been putting some money into Ultratech (UTEK), Align-Rite (MASK), FSI, Smartflex (SFLX), and a drug delivery company called Ethical Holdings (ETHCY)recently. Some of these are written up at members.aol.com
Also, I'm looking hard at a company called Precision Response (PRRC) after it tanked yesterday - outsourcing of telecommunication services - they are expected to earn 50 cents a share this year with revenues growing at 75% a year, grow eps at 40% a year for the next five years, and recently it has been beaten down to $10 (52 week high was $42 or so as I recall) because they did not meet street estimates. Revenues in this segment are expected to grow at 50% a year for the next 5 years, and PRRC uses a lot of technology to keep track of potential customers, place and schedule orders, inform area managers of problems reported by customers on the 800 lines, etc.
Merrill just downgraded PRRC to short term hold, retained the long term buy (interesting they started PRRC at a short term "strong buy" at $27, then downgraded the stock to short term "hold" at $8). Lots of good articles on the company and how this segment of the industry is growing as 800 numbers are outsourced - PRRC does a lot of work for Ryder Trucks, Taco Bell, AT&T and other companies as I recall. Merrill's rating is now D-3-1-9 for what it is worth.
Have not made a big commitment here yet, but is getting tempting - at a PE of 20 based on this years earnings and an estimated 5 year growth rate of 40% the Growth/PE ratio is 2 - attractive - but the big question is can you believe the earnings growth of 40% a year (my opinion is that very few companies can sustain this growth, but maybe 30%), and can you believe the latest earnings estimates of 50 cents a share versus the earlier estimate of 85 cents a share (my opinion is that 50 cents is probably close to what they will earn).
Lots of other good stuff around, but for one reason or another I've passed.
Best - Joe |
