MENTOR GRAPHICS Message Board

STOCKTALK

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.

Technology Stocks : MENTOR GRAPHICS

MENT 37.25

0.0%

Mar 31 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Robert Douglas who wrote (198)	2/4/1999 1:28:00 AM
From: P314159d	Read Replies (1) of 376

I like your analysis Robert and let me add some thoughts. I was compiling some Q4 stats on the various EDA vendors, today after I got MGs new data and these figures are intriguing. Co. shr$ MktCap Book Sales Q4 RvG Q4GM Q4ROS Q4ROE -------------------------------------------------------------------------------------------------------- SNPS 56.8 3900m 12.8 718m 13% 88% 22.4% 17% CDN 31.3 6800m 3.4 1200m 22% 78% 22.5% 41% MENT 13.6 900m 4.5 490m 19% 79% 8.6% 19% On a future growth basis, Mentor competes on GM and growth, but lags in the profit area because of excess expenditures over the past. The latest qtr showed major changes in net vs. sales. So Mentor should see great gains in the Return On Sales figure going forward. ( The upside earnings surprise you elude to). But look at the following value figures to show Mentor's undervalued status. Co. shr$ MktCap PBV P/S '99eps '99 PE -------------------------------------------------------------------------------------------------------- SNPS 56.8 3900m 4.4 5.4 2.50 22.7 CDN 31.3 6800m 9.2 5.7 1.45 21.6 MENT 13.6 900m 3.0 1.8 .60 22.7 So P/s and PBV are very low and so are the earnings estimates which should prove to be wrong for this year but way off for '00. Of course '99 stock prices reflect next year's prices so upside surprises should be ahead of us. Consider Robby Stephens upgrade today which increased '99 eps to .78 and '00 to 1.00. that estimate gets you to low 20s within a year. Based on .78 figure the stock can trade up to 17 near term. Future quarters will help the move beyond if Mentor delivers. I will take a stock like this in this overvalued market because I know it has limited downside and the earnings look positive. Then we have that beautiful chart along with it.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next