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Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns:

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To: ItsAllCyclical who wrote (3485)	6/13/2014 1:50:53 PM
From: The Ox	Read Replies (1) of 8288

I've been looking into their financials more. While the debt load is very high, their price to sales and price to cash flow is low and it's likely they can use their relatively strong cash flow to comfortably service the debt. EPS growth has been stellar, IMO, looking to go from $4 to $5 this year (25%) after going from $3 to $4 last year. Not unreasonable to expect over $6 next year. Seems to me an 18 forward PE at $6/share gives a price target north of $100, so at $75/share it's not cheap but not expensive either. Certainly they've done a great job translating their top line growth (avg about 13% per year for the past 5 years) into EPS ($1.80/share in 2009). Current PE is about 16, so it's not out of line but I can see the possibility of it expanding back to where it's been the past year or so in the 18-22 range based on the above. I thought the company did a good job of keeping expectations low, which may be why we are seeing the stock sell off the past few months?

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