>>Of course they can recognize it and will reward Eco accordingly.<<
So you think we'll all of a sudden get a reasonable PE because the numbers were audited by a big 4 firm? Hope springs eternal. I hope you are right, but I don't expect that anytime soon at all.
>>The stock wont fall back to 8 on news that it made .25 in its 1st Qtr vs. .25 of 97 on 30% tax versus 0 tax.<<
Sentiment will rule until at least June when and if DBCO is completed. Until then, we can look forward to the PE rising without the price following because 1st q 98 will be below 1st q 97. We just did 25c with less than 37% taxes and 1st q 98 will be slow according to Norris, so the PE will go up even if the price of the stock doesn't without the street anointing Eco. I'm not selling, but I know what I expect for the next few quarters. Dead money. As for coverage, I find it hard to believe anyone listening to the call is impressed with management regardless of the numbers. There was no excuse I will accept for Mike's mistake. He either lied or he has a CFO with his head up his @ss that should have warned him. My point is that this concept of the PE going to 20 because the street is now happy with the big 4 audit is now put off much longer because of sentiment IMO. If we accept that earnings even with taxes doesn't go above 1.08, we'll stay in this area until DBCO starts contributing. Unless someone comes out with a big time buy rec, that's my scenario, and you can tell I don't anticipate that.
(I know est are for 1.40, but how can you trust that as any more than a guess? Because Mike said so? Peddle that somewhere else now thank you. Watch 98 est sink tomorrow IMO) The street may discount the taxes, but they aren't going to reward us with a PE of 20 anytime soon IMO until they see what this year brings. Until DBCO contributes significantly to earnings, I wouldn't be surprised to see 8's, but more surprised to see 11 before the end of summer. There is no reason it should trade above it's historically high average PE or 10-12 before then IMO. As usual, I wish everything you think will happen does happen, but as usual so far, it won't come to pass. I'm not out, just forced to be more patient than I care to be. |
