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Microcap & Penny Stocks : Simtek Corporation

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To: NAG1 who wrote (2448)2/24/2007 11:53:09 PM
From: Crony  Read Replies (1) of 2619
 
No argument here. It does sounds exciting. But many times I got burnt by being overly optimistic. So I am trying to be more conservative and assume the worse.
I have no knowledge about the industry but I do agree that the potential market can be huge. There are more and more gadgets and most of them require memory. So even if Simtek takes extra 1/10 of a percent of this memory market - that would be huge for such a small company. That is the reward part. And the risk part of the equation is very negligible right now since they are growing revenues nicely and should be making money from the operations.
So they project to make $.20 this year exlcuding one time charges. Add to this $3 mln they gonna spend on the next big pie in the sky thing. This would come to making $.40 per share. Put conservative PE of 30 and this shoudl be $12 stock by year end. Can be more or can be less depending on what the management says about 2008 and beyond.
Well, as usual for many years, let's wait and see. I bought a lot more of this stock in $5-5.40 range a months ago and this is my #1 holding right now. Hope they execute.
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