Echelon Corporation (ELON) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Echelon Corporation (ELON)

ELON 21.88

+10.1%

Oct 6 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ted The Technician who wrote (2990)	6/17/2002 10:40:51 AM
From: Ted The Technician	of 3076

Shareholders are paying the equivalent of 5.8 years of ELON's sales for the right of owning ELON (price/sales=5.8 according to Yahoo). From another perspective, shareholders are paying the equivalent of 61 years of ELON's earnings (price/earnings = 61 according to Yahoo). An remember that it is earnings, not revenues, that are supposed to trickle down to shareholders. Is it prudent to pay 61 years of earnings for ELON when there is a significant risk that the revenues (and earnings) will drop when the ENEL contract ramps down in Y2003? Considering its current price and low margin of safety, I would rather wait until ELON finds another major customer.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next