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Gold/Mining/Energy : JDS Fitel

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To: Orwell who wrote (370)10/8/1998 10:21:00 PM
From: mariner  Read Replies (2) of 815
 
To all:
I agree small caps like JDS are not exactly popular right now. However, even anticipating a slowdown in growth going forward (from 65%) this quarter, this stock is ridiculously undervalued. Closed today around $15 Cdn. Just extrapolating .22 times 4 gives you a PE of roughly 17. Given the rate of growth, no debt, the market JDS participates in, this is a steal. Considering that growth remains around 65% (for now) the stock is just not valued properly. Even assuming that revenue growth slows to 30%, I would maintain its cheap.

Markets are not 100% efficient, it seems to me that this is a superb buying opportunity, even considering overall market risk at this juncture. (By the way, did you notice that R and D roughly doubled this quarter from last year? In my mind that bodes well for further growth).

All IMHO

Pat - if you are able to listen to the CC would you be so kind as to post a synopsis for us. I can't listen at work unfortunately. Thanks in advance if you can.

mariner

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