ZAGG: After listening to the replay of the recent conf call, here the company guidance:
30% increase in revenue. This would raise revs to approx $50,000,000 in sales in 2010.
20% net operating margins would mean net income of approximately $10,000,000.
After taxes, that would leave about $6,000,000 in income, which would be about $0.25 per share for 2010.
They said that they were being conservative on their numbers , and that they were not including potential revenue from new items such as the Zaggbox, Appspace, Zagg Japan, and HzO. All of their revenue growth was forecast from expanding their wholesale business. Zaggbox, Zagg Japan, and HZO are all guided to come begin contributing by the end of the year
Seems to me that a company like ZAGG, that has a "conservative" growth estimate for 2010 of 30% should be trading at at least 20 x future earnings (if not higher). With a conservative estimate of $0.25 per share with a 20 p/e ratio, ZAGG should be trading at $5 or so.
The current low price probably reflects investor frustration with management for not projecting well in the past. Let's hope they have done a better job this time. |
