Eric,
Sure i would completely agree that NSCP has a very high PE...who can't?
BUt there is a fundamental difference between the two companies looking at historical data...
NSCP's revenues the past 8 Q's are ($MM):
.7, 4.7, 11.9, 20.8, 40.6, 55, 75, 100....
AS NSCP increased revenues just under 400% from 20.8 to 100, SPYG only increased 54% from 4.2 to 6.6...
Also, Using .09 EPS for NSCP's last Q and annualizing that...the PE drops to 125...still very high, but at least the company is growing
213% annualized from the past two quarters sequentialized...
Go long on SPYG if you wish, however realize potential share price conflicts...my 2 cents....
PS...i think SPYG has a great future, but they just need to prove it and after one year as a publically traded company, growing 50% isn't enough to justify a PE greater than 60 in the immediate future, especially since the Director (CEO?) stated that earnings and revenues might suffer over the next 12 months...
I will definitely admit that i was incorrect before as i thought the release said that reveunes migth decline in total...I believe the CEO said that they might decline in growth...
How long will Wall Street Wait on this one? |
