Genesis Microchip (GNSS) Message Board

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Technology Stocks : Genesis Microchip (GNSS)

GNSS 2.395

-0.6%

3:59 PM EST

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To: The Ox who wrote (1107)	9/13/2005 5:51:28 PM
From: The Ox	Read Replies (1) of 1277

Inching toward my target from 1/04. Current FY06 eps target is 75 cents, so I didn't miss by much! Message 19656831 I'll jump in here and suggest that the analysts have their revenue targets for GNSS too low for next year and beyond. I think GNSS should be able to show revenue %growth in the mid to low 20s over the next couple of years and the analyst community has them growing about 16% at the moment. Combined with improving demand for their products this should help GNSS with strong ASPs going forward. This would be a nice combination and will add some "upside" to the current valuation. A price to sales of 2 and change is a bit low, imo, so I can easily envision a future scenario where GNSS gets a price to sales near 4 on higher revenues, adding substantial upside to their market cap. So a triple in 1.5 to 2 years is not out of the question (18 x 3 = $48). My 2 year target would be $32 - based on FY06 earnings potential of $0.80/sh and a 40 forward PE. Yes, very bullish but by no means out of the question, either. jmo, mh

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