Valuing SPCB -- let the numbers speak for themselves
This company is about to boom! Still massively undervalued. Estimating combined company at a 6.9 p/e as of close today. Keeping p/e same and with just $7.25 million in incremental '14 contracts, we should be above 52 week high. At a p/e of 12, with no new business, we would be above $15. Company will be announcing new pipeline deals shortly, and pipeline is only growing from synergies of combined companies. Longest term hold! Congrats to everyone who found this star.
Base Good Great
Recurring Qtly Rev Annualized $21.20 $21.20 $21.20
Announced New '14 Contracts $29.00 $29.00 $29.00
Future '14 Contracts $- $7.25 $14.50
Total '14 Revenue $50.20 $57.45 $64.70
EBITDA (33%) $16.57 $18.96 $21.35
Today's Mkt Cap $115.03 $115.03 $115.03
p/e 6.9 6.1 5.4
Stock price at 6.9 p/e $9.05 $10.29 $11.59
Stock price at 12.0 p/e $15.64 $17.90 $20.16
Nice analysis of the earnings and the potential going forward. I agree that share price can be substantially higher. The driving force for that is not only due to earnings and revenue increase, but also with so many naysayers suddenly showing up on the day with great earnings. These people shorted the stock going into earnings thinking the previous quarter's good earnings was simply a flute. These shorts will have sleepless night and waiting to learn the financial carnage to be dished out to them. Very glad the co keeps its promise to deliver in performance. Will be interesting to see how much SPCB will move up tomorrow pre-market as well as after the cc at 10:00 am. Won't part any shares until $25!
I still think the company is mainly hot air and management is outright lying about both size and margin contribution from the recently announced new contracts. Expect "implementation delays" being blamed for an equally week Q2.