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Simulations Plus, Inc. Message Board

  • SilverD19 SilverD19 Dec 15, 2006 10:42 AM Flag

    What am I missing here?

    31mm market cap with this growth? This stock is grossly undervalued, by a lot! The gross margins are impressive, they are in a great space poised for enormous growth, the float is low, and they just received a big contract!

    I didn't think there were any PROFITABLE undiscovered gems like SLP out there!

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    • it is Friday day traders leave for the week end next week will go happens to all stock with fast growth on Friday they ride them all week if strong then dump on Fridays same with cien and bsc and a like they had good runs now their out and the price drops i am goin to buy a bunch monday am

    • ---the contract is an old contract(plus) just renewed. How much of a plus who knows?--- Company may make 20 cents for the year if its lucky. Now just to be fair I'm long a good deal of shares in SLP. But being realistic at $4 plus and a PE of 40 plus last years numbers would seem like its being priced more than fairly currently.

      • 1 Reply to jrn69panther
      • Panther:

        First and formost Merry Christmas...

        Now, I don't think SLP is fairly valued yet.

        Walt said in the conference call that 1Q 07 will be a record breaker... and now this news release says...

        "That means that we expect the second quarter for this fiscal year will be improved over last year's record second quarter by the additional revenues from this order."

        "The Company's second fiscal quarter will end on February 28." I don't remember any time in the last seven years when management was so bold as to predict a record quarter two weeks into it!!! Their confidence level is huge!!!

        As we know from the past the Pharma industrys fourth quarter is the SLP first quarter and historically the lowest sales quarter.

        So if you add...

        Debt Free Company +
        Record Breaking Q over Q Revenue +
        The Unknow Value of their Technology +
        Growing Awarness in the Investment Community +
        The Fact That It Is Now a Mandatory Elemint in Some Co's
        _________________________________________________________

        I think you enter a model where people are looking two or three years out in figuring a P/E. And there is no saturation point in sight.

        The other thing is that P/E won't count because I think Walt will be spending the earnings on marketing and R/D so we won't have the P/E and Dividend model of a mature company.

        If he was simply banking earnings I think he could be hitting $.50 a year, within two years and at a 50 P/E that is a $25.00 stock, which makes todays price a joke.

        I think the thing to watch going forward... as Dick likes to mention... is the shareholder equity, which is going off the chart in 2007...

        JMHO,
        Blessings to all,
        Paul

    • Nothing - you're right, but we're dealing with a bunch of short term traders at the moment. They will be kicking themselves when it's at $10/share next year.

 
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