SI
SI
discoversearch

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.
Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: kolo55 who wrote (2)1/22/1997 10:07:00 AM
From: Joe Dancy   of 2542
 
Paul & Others - I like to look at the 5-year estimated growth rate to trailing PE ratio as an initial screen for attractive investment opportunities. A ratio above 1 is good and potentially is a buy. Of course, this is just the starting point, and further analysis narrows selections further. I took the companies that you noted were releasing earnings and checked their ratios to see what company may be more attractive than others in the sector. Here's what I found from Zack's:

Company 5yr growth/PE ratio
ELEX 1.9
BHE 1.4
SCIS 1.4
SFLX 1.4
DIIG 1.3
ALRN 1.2
ACTM 1.0
KNT 0.9
PLXS 0.8
SANM 0.8

Of course, the ratio can be skewed by coverage by very few analysts or where one has a unrealistic high or low estimate, and does not take into account risk, company financial or technical strengths, etc.

Interesting that SCIS rates so well on the ratio - generally smaller companies have higer ratios than larger competitors in most industries. I'm not familiar with ELEX - they had the highest estimated growth rate of 42.5% - essentially doubling every two years or so. What do you or others think of ELEX? If it can grow at 40%+ a year I'd be very impressed, and probably would also be a shareholder.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News