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Technology Stocks : OmniVision Technologies (OVTI) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (829)	12/2/2004 8:31:43 AM
From: amoezzi	Read Replies (1) \| Respond to of 2273

Elroy, Well done!! Bravo!! Let us see if he responds. Long on Ominvision. Moezzi

To: Elroy who wrote (829)	12/2/2004 7:39:39 PM
From: Labrador	Read Replies (1) \| Respond to of 2273

>>1- If you subtract the net cash per share of $4.48 from the stock price, and you use the next four quarters consensus EPS of $1.15, you get a forward PE of 13x. A similar calculation for the S&P 500 semiconductor stocks gives forward PEs between 18x (MU) and 33x (BRCM), with most of them in the 25x to 30x range. In other words, OVTI's PE is about half of its larger peer group. The stock could appreciate by 100% and then its PE would just be "in line" with its S&P500 peers.<< Not to be a party pooper, but you must also reduce OVTI's forward earnings by the reinvestment income (adjusted for taxes) and recalc the EPS to get a revised P/E. If they can get 2.5% after-tax, that is net earnings on the cash of $4.48/shr x 2.5% = $0.11/share. So earnings would be $1.15 - 0.11 = $1.04/share. Still a low resulting P/E IMO.