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Strategies & Market Trends : Value Investing

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To: Elroy who wrote (58208)10/15/2016 10:52:35 AM
From: bruwin  Read Replies (1) of 78740
 
SIMO has shown itself to be a good growth stock, although Revenue has flattened out a bit in the last 3 months. Going forward, I guess a lot may depend on the advancements made by others in the special line that SIMO is in and how that affects SIMO's market share.

Here's SIMO's last set of Quarterlies where I used average percentage increases in top line Revenue and bottom line Net Income to do a future share price prediction.

I assumed Revenue increases of about 21.5% and Net Income increases of about 26%. That gave a predicted EPS of $3.82 per share. Based on the last 3 years of P/E history I used a P/E of 20 in order to predict a future share price of about $3.82 x 20 = ~$76 ....







So, based on a current SIMO share price of about $48, there could be a Capital Gain in 6 months time of about $((76 - 48)/48) = 58%.
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