Ok, before I get "flamed", I'm currently Long GV, as I also think it's undervalued. But one thing that concerned me with this latest report is that they had more "non recurring" expenses. Last Qtr. it was expenses related to getting the STEC project done on time and this qtr. for bad sub-contractors.
Who cares if they have more revenues, if they can't equate to the Bottom Line.
musk, I understand your concern, but taken in context of their muti year history, GV rarely has had much non recurring charges. I doubt they will all of a sudden start messing up every qtr. Right now, I believe what's important is to note and continue seeing is their backlog increasing, and the $5M increase qtr over qtr was impressive. Also impressive was they could do $23.4M in revenues without the STEC contract. The additonal comments in the 10Q of recent contract wins, and the expectation of more to come only adds to my belief that their backlog will continue to grow.
As far as valuation, I believe it should all be based on future estimates. Right now, my assumption is for at least another $23.4M qtr or better for the Dec qtr, and continued backlog growth(based on company comments in the Q). Using the same expenses, margins, tax rate, etc as in the Sept qtr, it seems in the bag for them to post $.10+ for the Dec qtr. Therefore with that potential into 2014, I see no reason not to give the stock a $4 target. This assumes a very conservative 10 PE fully taxed going forward.