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P&F target is now $26.
It was $21.5 three weeks ago.
$23 seven or eight 8 days ago...
Now target is $26.
So your $22 target may not be that unrealistic.
Wall Street loves strong consistent growth potential and quite obviously will pay a PREMIUM for growth.
It has been well documented that $14 seems to be some sort of near term reasonable minimum fair valuation level.
At that point the question becomes what multiple would represent the strong projected growth ahead AND what is the real POTENTIAL for earnings in 1,2,3 years.
Is it $.65 this upcoming calendar 12 months, $.84 in 2014, $1.06 in 2015, $1.35 in 2016?
IF SO...Wall Street likes strong growth visibility and will pay for it.
25, 30, 35 PE on that growth seems rational.
$16.25 to $22.75 valuation seems reasonable.
KKD is a well love stock and will make headlines on all the business channels. I am sure they are already talking about it. Jim Crammer will never stop talking about KKD especially with the big move up today.
P&F target now $27.50
Suitors most likely would have to pay a very strong premium for KKD.