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.
Thanks, I see where you're coming from. When I was playing around with the numbers earlier, I came to a similar conclusion about the potential for TSRI. But, I don't see that potential being realized any time soon, which is what makes this stock so frustrating.
Actually, using your assumptions, and adding that executive compensation declines from the excessivily overpaid to merely overpaid could add another 5 points to the growth rate.