another numbskull applying a p/e against interest income! where did these dummies go to school?his target is based on 23x 2009 (!) eps, but most of EPS is interest income, not operating earningsyou never apply a p/e raio against income derived from interest on cash balances because that's not what the business itself is generatingwhy are these analysts covering this stock so clueless???Cowen's estimates show operating losses in 07 (4 Ratings) 22-Mar-07 08:53 pm Cowen has go them doing the following in their 3/2/07 report:Fiscal Year....Sales ...Operating Profit....Net Profit2005 $19,004...$532...$8512006 $24,740...($1,568)...$1,3592007 $28,715...($941)...$3,0032008 $36,616...$1,622...$4,550the big swing between Net Profit and Operating Profit is the interest income earned on their cash, which is a non operating item, and not what the business itself generatesSo the only reason it looks profitable is due to the Int Incomethe problem with IDSY is that they are only earning money because of their interest income on their high cash balance, which is not what you apply a p/e multiple towhile I would not short a stock like this, I can see what the shorts see and it's a downside risk for sure$143MM market cap divided by '08 projected $1,622,000 in operating earnings = 88x$72MM enterprise value divided by projected '08 $1,622,000 in operating earnings = 44xboth of those calculations were not even tax effected, which would drop their values considerably$1,622 - (1,622 x .35%) = $1,054$72M divided by $1,054,000 = 68xmy point is that you shouldn't look at their net income projections for EPS and use them for p/e purposesit's pretty pricy already even on an enterprise basis which backs out the cash from the market cap, even if Cowen's projections materialize
u r correct. except small scalp stocks almost NEVER trade on financial fundamentals, but you know that. Be very careful as 25% of the float is short. Keep in mind this company is in its infancy.
What exactly is Jefferies new target? A briefing.com article says at the beginning $28 to $23. The other part of the article says $23 to $28. My Fidelity site says $23. What is it?
who cares what their target it, it's baseless! that's my pointyet another analyst trying to drum up i-banking business and no clue how to value a company