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Methode Electronics (METHA) Message Board

  • Chacha1981 Chacha1981 Jul 6, 2000 11:17 AM Flag

    My METHA logic is..

    COMS is $57 and will get 1.5 shares of PALM $32 x
    1.5 = $48 on July 27. The value of COMS will go to

    METHA has 35.6MM shares outstanding. The spinoff has
    (8.75/.14) 62.5MM shares. That is about 1.75/share of METHA.
    Let's say 1.5 to be conservative.

    $24MM of last year's income came from METHA but sales
    and income are flat. That means $.67 per share. At 20
    PE is about $13/share.

    Approximately $7MM of
    last year's income came from optics. With 62.5MM
    shares that is about $.11 EPS but growing at about 85%
    annually. 100 PE = $11/share.

    1.5 x $11 = $16.5 +
    $13 = $29.5. Those are some pretty aggressive PE's.

    Where is the error in my logic?

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