Rainier, In all honesty, my initial gut response was 18, then I "talked myself" into 20 as I made the case for 18 (don't worry - I didn't answer.) Between the cash position, no debt including their own building, they are well positioned to absorb a bad qtr or two, which mitigates the volitility. My gut is that the EPS volitility causes analysts to play it safe.
Also, to flesh out my multiple scenario, I don't see the market rewarding EQNX with anywhere near an 18 until they have a couple more good qtrs, showing that the .15 was a semi-fluke. It will take some time to restore trust, but as we saw before, once growth and trust meet, the appreciation can be substantial. Scott |
