Regarding the issue of "fully valued", I could be wrong but I have not seen any updated analyst estimates yet. With the Company now in the midst of its 4th fiscal quarter, Wall St should be focussing on Fiscal 99 EPS estimates. I wonder if they will be ratcheted UP soon? Also, ARX is going into its seasonally strongest shipping quarter with a record $69 million order backlog, which is 41% higher than year ago. Based on the comments from the conference call, 90% of the backlog is shippable over a running 12 month period.
Also, I stand to be corrected, but it was my impression that their fastest growing division is Microelectronics where revenues grew +65% versus Q3 YA while the new $10 million contract announced last week is another division.
Compared to other companies in the S&P 500, Russell 2000, Dow 30, etc..ARX still looks RELATIVELY undervalued by a variety of valuation techniques, eg PE, PSR, PEG, etc...What seems to be holding the stock price back is that Institutional money got in on the secondary priced at $13 and there has been a lack of follow-thru from the retail aftermarket. If I were Mike Gorin, I would be raising hell with Oppenheimer, Soundview, AG Edwards and that other 2 bit Wall St outfit that the ex- Motley Fool guy went to..If the Aeroflex secondary had been handled by a Tier 1 firm like Alex Brown, Merrill Lynch or Goldman Sachs, ARX would already be a $20 stock.
Aeroflex is delivering BUSINESS RESULTS on both the topline and bottom line. Anyone beg to differ? |
