This is a typical stock that drops on NOISE. People run scared. There is NEVER good news at the bottom (as there is NEVER bad news at the top) BUT the recent news wasn't so bad! Don't be fooled by ANALysts again! This is a solid, profitable 80 yr old company with nice growth, AND a dividend. This may drop a bit more,,, but compared to so many other stocks, HOFT is a screaming buy. I'll be surprised if it drops much more. It should recover VERY nicely. You may not see an upgrade for awhile, so be patient. At $16, I'd call it a STRONG BUY. Just look at the numbers! Its hard to pick the bottom, but this should be close!
snekcur, I have to agree with you. The 3 analysts surveyed by First Call have an average prediction of $2.10 EPS for FY06, compared to $1.56 in FY04. If true, that would represent a 16% annual growth rate. Yet HOFT is only trading at 10.5 times the $1.69 EPS forecast FY05.
It's pretty rare to find a stock with a PEG ratio of 0.65, but if you believe the analysts that's where HOFT is now. If it goes to a PEG of 1 (meaning a P/E of 16), that would give it a target price of $27 for '05 and $34 for '06.