My (somewhat unscientific) projection for 2006 is at least 43 cents a share in earnings. That should equate to a 7 - 8 Dollar share price within 12 months.
Let's say they achieve 15% sales increase in 2006 versus 2005 - which is likely. Assuming normal margins and normal expense ratios, that should add somewhere near 12-15 cents a share in earnings.
I believe that VAT change could unofficially add another 2 - 3 cents.
This is before the added efficiencies from the DC which are difficult to quantify, so I won't yet, but that, also, could be an upward suprise - but added depreciation could also make this a neutral in fiscal 2006. Also the Gold Frost IPO is still a bit of an unknown, so can't quantify that yet either. Finally, an acquisition could also change the metrics.
The market overall will be flat or down - but I believe we're in for a pretty sure bet here assuming we don't go private before that, and also assuming that market accords us at least a reasonable P/E ratio.
True. However, this PARTICULAR newletter is rated the best performing one over the past twenty years by Hulbert. Not much dispute that he's a decent stock picker, and that he's had some spectacular successes.
He's not above laying an egg occasionally, however. And he DID pull the plug on WILCF - I think undeservedly, and too early
BTW, I checked back, and in March, 2005, his "buy below" price was $9. In other words, he rated it a buy all the way to 9 bucks a share.
Can't rate this recommendation a success. My point was, his freebie doubled it in about a three day period, but it came right back down. Those that bought and sold precisely on his advice - at least on this one - broke even. Those that bought at the top - well, it's obvious what has happened so far to them.