To: Johnny Canuck who wrote (36578 ) 3/26/2002 11:14:40 AM From: Return to Sender Respond to My initial target is 25 on ESST but I think that will be far exceeded. The upper Bollinger Band is now at 26.66 which would be another potential profit taking point:stockcharts.com [h,a]daclyyay[pb50,200!d20,2][vc60][iUb14!Uk14!La12,26,9]&pref=GAn older note from Briefing.com from about a week ago : With demand for digital cameras and DVD players expected to continue to grow over the next couple of years , company should have little trouble sustaining above market top/bottom-line growth... As a matter of fact, street looking for ZRAN to deliver sales and EPS growth in FY02 of 33% and 124%, respectively... Growth is expected to remain robust in FY03 , with earnings jumping by 51% on a 25% rise in revenues... Not surprisingly, stock's value reflects market's generous assumptions, as ZRAN trading at 46x and 30x projected FY02/FY03 earnings... While that's a hefty premium to competitors like ESS Technology (ESST 20.70 -2.21), ZRAN has also easily outperformed ESST year-to-date (+19.9% to +0.2%)... One reason for the performance disparity is speculation that ZRAN is taking share from ESST... ZRAN's superior growth rates also help to explain the stock's premium... As long as ZRAN can continue to exceed expectations (company has beaten consensus estimates for 11 straight quarters), and deliver on its promise of strong double/triple digit growth, the stock is likely to outperform... Major resistance is at 42.52 (52-wk high)... Penetration of this ceiling will position stock for near- to intermediate-term assault on the 48-50 area... If ZRAN's valuations make you uncomfortable, consider looking at ESST... Despite anxiety over potential market share loss, ESST is expected to post strong earnings/sales growth this year... It also trades at steep discounts to its peers and the market as a whole . -- Robert Walberg, Briefing.com Remember that as long as ESST can lower their cost of production they can continue to make more money even if DVD player prices fall. So far so good.
