Paul you have a lot of questions and I'm not sure I should answer, since some are just a compiling of past experience by me. I will however say that IMO anything under 10 is a bargin. Can you get it cheaper than 7 1/2, of course, if nothing happens and the stock continues to act as a stealth aircraft. Do I think that will happen? To some extent, maybe, but as I pointed out if you can by it under 10 to me that is good.
I base my evaluation of the company's value thru past performance, new contracts and future potential. The current PE is 67 and of course that in and of itself is not a barn burner, but with the current contracts pending, etc. and because it is a Tech. company in a hot area, haveing a PE at all, is better than most techs saleing for alot more. Heck I know of companies that have a PE of 1 that are going south. It all depends on the future potential, not the current share earnings. I would much prefer a company that reinvests it's profits than simply a good balance sheet. Anyway that is why I think this thing is way undervalued.
As for current earnings, I believe they could be outstanding. That doesn't mean a good PE since they could drop the net for R&D, aquisitions etc. The Gross income however should be outstanding.
Everything however is relative. If for some reason they were not able to meet certain orders because of inventory shortage, bad weather, etc. this could alter the bottom line. In any case I think a conference call is in order, regardless of the earnings to call attention to the company.
With the TI anouncement, and it's potential, I don't want to see SSPIF to turn out like IMP and their relationship with IOMEGA. SSPIF needs to blow their horn and take credit, this would send the stock price to it's right full place. |
