The average EPS estimate amongst four analysts is $3.38 for 2014 and was updated earlier this week. Now you try and convince me that the stock will be trading under $125.00 upon reporting of numbers that match this estimate and I'll try to convince you that Phoenix, AZ will see 10 feet of snow next year.
You don't think the financiers at $32.00 along with Kodak, Dell & Intel didn't do their homework ? Seriously people, get a clue. Too many armchair QB's spewing total nonsense in trying to justify their short position in the stock, preying on the weak while the entire management team was away in New York.
I'm a short-seller as well, but would never resort to criminal twisting of the facts for profit. Maybe a few of you who have no idea what you own on the long side should give Ivan Donahey, Jr. a call, as he's the main contact at Kodak who's working with UniPixel.
My price target ? Assuming the analysts EPS 2014 target of $3.38 is met, I'm looking for $175.00 by the end of next year which would only be a trailing P/E of 51 in the face of a growth rate much higher than that, so obviously a much higher price would be warranted except for the fact that the Seth Shaw's of the world will attempt to make this a battleground stock, thus I don't assign a P/E that matches the growth rate.
Short-sellers at this level had better pray that problems arise going forward or they'll be facing multiples of the pain that was felt from $41 down to $15.
"The average EPS estimate amongst four analysts is $3.38 for 2014 "
Those analyses are based on what? UNXL's estimates of their inflated share of an inflated market. No way is the niche market for laminate touch screens anywhere near a billion dollars much less $19 Bn. No way UNXL will take a huge share of the actual market away from the competitors who are already there (Cambios and 3M for instance). what we've got here is company paid analysts telling the public what the company wants the public to hear.
At $3.38 EPS for the stock to trade above $125 the PE ratio would have to be in the area of 45.
ATML PE ratio is 12 and TI's PE ratio is almost 18.5. Cypress(CY) with a $1.7Bn market cap a current FY eps of 11 cents pays 3.8% dividend and is trading around $11 with a PE ratio of about 55.
(The Gen4 TMA467 controller tracks up to 10 fingers in thin gloves and two fingers with thicker gloves, such as those used by skiers. It delivers best-in-class accuracy and linearity for gloves of different materials and thicknesses. It automatically switches between glove and finger tracking without any intervention) UNXL is just so proud of its two bare finger touch capability that it is featured prominently on their web site.
What is it about UNXL that would justify a PE ratio of 45?
Excuse me but where did you get a PE for ATML of 12?The last quarter that positive earnings were reported it was $0.09 per share. The stock is trading at $7.87. That is a PE more like 85. Actually right now Nasdaq has ATML at -$0.09 EPS which is gives an undefined PE. ATML has traditionally traded in the 40 PE range and is the model most of us have used in predicting PPS prices for UNXL.
Only a "newbe" to investing would compare P/E ratios of start up companies to established ones. P/E ratios are based upon growth rates, and when that perception changes so does the shares price (see Apple). UNXL trades at much higher P/E's because it's growth will be explosive for at least the first 3 years. Only when it's growth rate starts to settle down will comparisons become meaningful with other established companies.
As for your other arguments, they are also lame. The touch screeen market is not a small niche market, it's huge and growing (probably north of 20B and growing over 10% a year). Just look at cell phones, tablets, notebooks, and now with Windows 8 desktop PC's. Keyboards are slowing disappearing, touch screens are everywhere and growing.
As for product effeciency, UNXL has never claimed Uniboss will outperform everything on the market today. What they do claim is a major price advantage with similar performance. It's great Cypress has a touch screen that works with gloves on, but really, how much extra are you will to pay for that?
The only hope the shorts had here was that UNXL ran out of cash before they could bring their product to market. Once they raised that 40M a few weeks back (32 bucks a share) that hope all but vanished. That's why shorts are so deperate lately. Another 3 or 4 months and all their arguments about "UNXL will never sell a single unit" will be history.
Sentiment: Strong Buy