"non repeatable" in the sense that it may not be TX project related, but they do seem to have a lot of "repeatable'' "non-repeatable" charges.
pfs- find me one other company on a major exchange that keeps increasing revenues qtr after qtr, and is increasing earnings to the tune of $.10+/qtr, that sells at a 4 PE going forward !
We're probably foolish for holding on, who knows? I believe sooner or later they will have a "clean" Quarter.
When GV was making $.10/qtr with the CREZ project in 2012, the margins were much higher than they are today. I believe those margins were unrealistically high. Also the tax rate was much lower then as well. Still the stock got to over a 10 PE going forward. With revenues/qtr up 50%-75% over CREZ revenues/qtr, and with lower margins and a higher tax rate, yet the company still making around $.10/qtr, I believe a higher PE is warranted. A conservative PE going forward at this point should be around 12 for the consistant revenue growth/qtr GV is showing. Therefore, IF the company can continue posting $.10/qtr(assuming normal tax rate of 37%, and excluding one time items), I believe around $5 is a conservative target.
right, from their #'s, it does look like .10 a qtr. going forward.. But as we were discussing, the surprise losses may not be over.
gopp- The June qtr was much better than $.05. It was $.06 from Continuing operations, plus there was a $1.2M non repeatable charge, plus the tax rate was 46%(much higher than the normal 37%). All in all, the qtr was more like $.09 !
Google, "substantial completion construction definition," and you'll see several listings that will give you an idea of what JS means. rr
That's a good point. With that kind of vague wording, there may be more losses there. But maybe '"substantially" smaller? I expect they may do a few cents better in the 3rd qtr. But even if they can just repeat .05 every qtr., that's .20 a year. With a PE of 15, that puts us back around $2.50- 3 per share. Did anyone notice that this qtr.'s revenue was a record high? Why the heck did J.S. not mention this?
"substantially completed our unprofitable Texas Projects". Does this mean there may still be more charge offs in Q3?
Hopefully they will continue that. Here's what the CEO said in the earnings PR...
John H. Sottile, President and Chief Executive Officer of Goldfield said, "We have now substantially completed our unprofitable Texas projects and have accomplished a reorganization of this operation. This will permit us to seek other projects from new and existing customers. Fortunately, our work outside Texas has remained strong. The general demand for electrical construction services is positive. Our focus is to achieve operating efficiencies, improved profit margins and to secure well qualified labor to take advantage of these opportunities."
Panalta, you are frighteningly funny. I agree with your price target, although it remains to be seen how soon it will get there. Maybe in a runup into next quarter's earnings? Good luck on your trade