To all: The next VTSS!!!
Check out AHA. It's revenue is the 2nd biggest among GaAs producers and 3/4 of VTSS, but the p/e is 18 after last week's earning release. Earned 0.98 in fiscal 98 (ended in March), and trading at ~$18/sh. Revenue growth is ~40%, gross margin ~40%, management expect dramatic margin and revenue improvement in 3-6 months. Solid balance sheet, expect to expand capacity 100% within the next 12 months. Tight quality control, unlike TQNT, RFMD, ANAD, has no quality problems under the new managements.
I'm going to switch from VTSS to AHA, which I expect to earn $1.7-2.0/sh in the next 4 quarters, with an average p/e of 25 for the GaAs producers, a target price of $35-40 is quite achievable. It's undiscovered because the company lost money one year ago and the eps on the reporting services hasn't been adjusted yet.
Anyone interested please look into it and tell me what you think.
Frank Chen |
