The company has no debt and they are buying back shares faster than I have ever seen before. When a company has a slightly bad earnings report stocks drop like a rock. But, this earnings reports was fully understandable, Y2K earnings were lost. The company will go on with 25 percent earnings growth from a new base of P/E 7. Wait it out, this is probably one of the best shots you got.
growth rate coming from, or maybe I should ask off what base?
The Y2K business still accounts for 20% of operating income, so there's still a bit of downside from this. In addition, the revenue growth from contract programming has been steadily declining for the last 4 quarters, and is now negative. Hardly predictive of 25% growth unless they unveil some secret weapon. To me, I can't see where TSRI is on track for 25% growth anytime soon. Hell, I'd be impressed with 10%, but I'm not holding my breath.
The 25 percent growth is from buybacks and inflation. If your P/E is 5 (7) and you buyback shares aggressively, your earnings growth will be 20 percent. Throw on top of that 5 percent inflation and you have got 25 percent growth. But TSRI historically has had good earnings/revenue growth so you might get more. With zero debt the future looks bright. I am trying to day trade this stock long-term. Some more stocks to look at KSWS, JWG, CDT, and FLXS.
i've heard this all before...earnings will be coming out...wait a little while longer, etc. this company is going nowhere in my opinion. how long can a person hang on. hopefully, i'll find a good stock and make back some money. good luck.