EDAC - Paul, Thanks for the reply. What p/bk and roe values do you guys consider attractive?
Here is some info from an investor from another msg brd:
"No idea how much more they can produce before reaching capacity. They are under contract to grow revs by $5M per quarter in the next few months so I expect revs to grow to $25-26M per quarter. To be perfectly honest, I don't care if EDAC grows beyond that. Here's why. If they get gross margins to 19% which I think is entirely doable, and quarterly revs to about $26M, they will start banging out $0.33 eps consistently beginning in either Q1 or Q2 of next year. Sustained quarters at $0.33 eps takes EDAC to $27/share in about 18 months from today at a P/E ratio of 20. That's only delivering their backlog and what they are committed to right now, never mind about future growth beyond that. These numbers are becoming astronomical and sound silly to talk about, but the reality is, all these projections are based on what EDAC's already signed up for and the CEO's comments. Companies like EDAC with only 5M shares available can experience this kind of exponential growth, that's why I follow them and look for these turnaround stories and try and get in before they go parabolic. EDAC is an absolute monster, they have blown away my lofty expectations the past 2 quarters and my projections for the next 18 months are absolutely doable. I'm completely confident of my $15 price target by April, the other price target, well, we need to see about 2 more quarters of earnings to see how much revenues and margins can grow and if my estimates are on point.
Aircraft deliveries are expected to grow starting in 2012 and increasing through at least 2015. So this story is only getting started. The only thing I see slowing down the EDAC train is a potentially terrible global recession which could temporarily cut back aircraft demand. Outside of that, I expect all my price targets and timeframes to be met." |
