Dawg, posters, lurkers... enough gallows humor.
The reason VLSI was punished hard this last year is reflected in the
numbers: Declining gross sales, low margin, and the other metrics
that dervice from these key numbers. If, however, in my very very
humble opinion, sales and or margin can be reversed even modestly,
this stock can have a nice kick simply because most of the other
numbers are in fact, better than the comparables. For example:
VLSI Industry Avg SP500 avg
PE: 16 27 30
Price to Cash Flow 3.7 19.2 22
Price to Sales 0.8 5.7 21.9
Price to Book 0.9 6.5 7.4
Debt to Equity 0.3 0.1 1.1
(Yes, I'm being selective with these numbers. Return on Equity, for
example is 7.5% compared to 28% for the sector and 21.7 for the
SP500)
Over time (5 years), EPS has risen @34%. This compares to 43% for
the sector, and 19% for the SP500. Ok, so it isn't a barn burner
compared to the sector. Compared to industry at large, it's pretty
d____ good.
So. The the big question is: Can the numbers turn around? Will they turn around? Opinions? Comments?? |
