Cragganmore,
I disagree. If we beat the estimate by 1 or 2 cents that
will be good enough. COMS is still a turnaround story. Lots
of folks are just wondering if it will make it's numbers.
It can't be expected to make 5 cents over (though IMO, I
think it's possible). Also, if it was expected to be higher,
estimates would be higher.
Also, remember that the price is also a function of profits
for future quarters, so even though this quarter, COMS will
shows more signs of a turnaround, the even more important
thing that it will show is that future quarters will show
more potential. Palm Pilots, NICs, and modems seem to be
showing this will happen. If the TNT product kicks in
with VoIP contracts (as I think it will), then we will
see future profits really take off. Same for the Corebuilder
and for xDSL or Cable modems. There
are 1/2 dozen areas now where COMS can make big breakthroughs
in revenue generation next year (it helps that COMS is positioned
to take advantage of many fields). If this happens, then
future estimates go up, and price will easily follow.
And, let us not forget, that a profitable company will be
rewarded with a higher P/E simply on the lowering of
interest rates. The way to figure this is to take the idea
of a bond. The present value of a bond in the future will be
worth more if the interest rates goes down right now. Well,
a profitable company is a stream of payments, though it
varies much more than a bond with interest. When taking
the present value on future streams of profit from the
company, the present value will move up as interest-rates
go lower.
joe |
