Not just P/E and not even just valuation.
A company can be valued at multiples far higher than the market, but in that case there should be a reason for it - high growth expected in the future, a buyout, etc...
I do not see anything of the sort with NVLS. It is of course very probable that the market knows something that I do not, and hence my question to this thread.
2 times book, a trough floor for semi-equips, is ~$26 for NVLS
Possibly, but we are way over that price now. Besides, I could argue (and often have) that price/book is not a good way to value a company, that what matters is not how much a company has in its books but how much money it earns with them. If you believe otherwise, there are quite a few integrated steel companies trading below book value that you might look at.
you can choose to wait for the NVLS mid-quarter report after the market close today
Yes that is what I am doing. I doubt if it will be very positive, though, since their announcements of "anemic demand" last month did not inspire me with a lot of confidence for their prospects for the rest of the year. |
