American MultiPlexer (AMUT) -- Cheap Now, But for How Long Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : American MultiPlexer (AMUT) -- Cheap Now, But for How Long

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: j g cordes who wrote (41)	5/23/1998 8:12:00 PM
From: Crossy	Read Replies (1) of 64

Jim, PE I don't use. I use price to sales with normalzied profit margins and industry standard ratios. For instance in telecom, ADTN & PAIR have a PSR (Price Sales Ratio) of 3-5. TLTN (the cheapest) out there has a PSR of 1.5 but it doesn't have its own xDSL technology, only T1 and HDSL and has to buy in the SDSL / HDSL solution, but PAIR did the same - buying in / licensing their xDSL solution. You also need to asses typical net margin because high net margin and high PSR rating tend to correlate. Valuation disparities tend to fade out in course of time. For that reason I liked the Price Sales plays. Always compare to industry. Here (telco SDSL/XDSL) the PSR valuations are high because the expected net margin is high. So 3-5 PSR is common with a small net margin now (margin is expected later). Other industries (retailers) are far less preemptive - there You have 5% net margins often coming along with PSR >1. So TLTN (cheapest of the bigger firms) has PSR of 1.5, ADTN & PAIR have PSR of 4, ORCKT and AWRE have PSR of 9. And AMUT (believe it or not) has PSR of 0.8. This gives me a reason to believe that AMUT could easily double. If growth comes in with SDSL it could go even higher. The nice thing with the PSR is: less assumptions - You can compare apples to apples and leave the oranges (cost) where they belong. You even can analyze new strategic fields by looking at market share projections and upstream revenue. This model excludes the startup costs or turnaround expenses in other situations because they don't belong here. I mean ever noticed that CYMI traded at 100 times PE ? The problem with PE in my opinion is too many uncertainties (cost, depreciation ?, etc,) which describes nothing. PSR however is indirectly linked to Cash-flow and management possibilities. PE in the classic way it's constructed is also a trailing number and You cannot figure in new fields of business. AMUT is being audited and is in the process to become a reporting company. For me as a European it'S very costly (transatlantic long distance) to call up Mr. Tan every time. So I suggest to give him a call (or IR) and ask about proceeds of reporting status. As far as I remember they are getting their audit done right now. Patent numbers the same. It was mentioned by some industry publications - the exact solution (think they are using Siemens chipset and a "permanent" connection). SDSL product is new and should be in testing phase upcoming 3 months by telcos. I posted all piece of news (together with the links You are looking for) so pls. read the first 20 messages - all is there that I found. Patent numbers ? Not sure - either call them or one of the news releases contained them. The MUX-6 is patented - that I do know. There's a customer list in one of my postings, if You have any contact among the telcos listed, pls. forward the response You obtained. best regards CROSSY

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next