HOM will give earning guidance before Aug 15th.
Q105 earning was $1,021,000 or $4,084,000 annualized, with 20,902,000 shares outstanding or $0.195 per share. Applying a 12 P/E ratio gives stock valuation in place of $2.34.
CROSSY, what kind of P/E would be justified, 12-15?
Based on the past four quarters, earning growth are 18.3%, 27.3%, 17.1% or an average of 20.9%, which translates in 84% annual growth. To be conservative and by using a 30% annual growth, that gives you projected earnings of $5,300,000, or $3.05 per share.
Now that's in place for 2005, without the California co. and Cornerstone, financed with internal cash so no dilution, which I estimate to be in the range of an additional 5 to 10 cents EPS, so $0.30-$0.35 EPS, which translates in $3.65-$4.25 for the next 4 quarters.
Therefore, way undervalued here IMO. |
