Let's look at the numbers!
Stock price = 22.875
P/E ration = n/a (negative earnings)
Book Value = 4.84
Full Year Estimate = -0.55 (about two weeks old)
Debt/Equity Ratio = .58 / Industry = .35
LTD/Equity Ratio = .55 / Industry = .30
Quick Ratio = 1.37 / Industry = 2.88
Current Ratio = 2.31 / Industry = 3.73
Last 4 Quarters Revenue = 23.62 and Earnings = -1.94
Last Quarter (Mar) Revenue = 3.77 and Earnings = -.56
Only one analyst following with a HOLD rating (about two weeks old)
Short interest in April was low, only 1,253,000 shares vs 1,355,000
Outstanding shares = 63,438,000
Floating = 49,500,000
Looking at Barron's last Sunday, Zenith traded in the low 40's in the late seventies and the mid 30's in the early 80's.
Going back to 1988 I show Earnings/Share losses every year!
What's all this mean - ASSUMING $30 A SHARE
The Price/Sales would be approx. 1.30, the industry average is 12.16.
The Price/Book would be 6.20, the industry average is 5.61.
To summarize - I feel a $30 price is not unreasonable. The problem Zenith has had was not showing a profit. I looked at 8 years so far and they never had one. That eliminates the P/E ratio.
I'm long ZE and will only sell if I see a substantial correction. I would then purchase more shares on the way up. Otherwise, they could be trading in the 40s to 50s in a month or two.
JUST ONE MANS OPINION - BUYER BEWARE!!!!!
P.S. Do you know what makes ZE's recent climb look like small change? Look at (IDID), up 1566% in two days. - I WOULDN'T BUY THAT ONE!
Aloha |
