Re: ISI, Phoenix, and Wind River
Company Price Revenue Mark Cap EPS P/E Book P/B
Phoenix 8 1/16 124,000 223,976 0.60 13 129,081 1.7
ISI 15 1/8 106,900 351,520 0.69 22 99,142 3.5
Wind River 20 3/16 129,400 869,011 0.77 26 149,414 5.8
The EPS and P/E numbers are forward-looking from Zacks. If you use the
Motley Fool PEG ratio as an indicator of value, then Wind River is a
better deal than ISI. I endorse this approach because I think Wind River
has a long term sustainable growth rate of 30%, and ISI and Phoenix can
sustain 20%.
I believe the interconnect semiconductor IP group has a sustainable growth
rate of 40-70% for the next 5-10 years, which would raise the overall
growth rate above 20% several years from now. There is potential for a
$300m IPO in 2-3 years, so I think Phoenix is by far the best value of the
3 companies. If they manage this business well, their long term sustainable
growth rate will be the highest of the 3 companies.
Craig Slayter has been the major proponent of this business inside Phoenix
for several years.
How was the skiing in Steamboat? I went to Eldora last week, but there
were dry patches on the steep slopes that I like to ski. I like the tree
skiing at Steamboat and my reports tell me they have the most snow in the
state.
Fort Collins is the closest large city to Steamboat. We're the only locals
you'll find there. If you go 4 hours directly west through the Poudre
Canyon and Cameron Pass, you run into Steamboat. |
