from yahoo data:
Qtrly Revenue Growth (yoy): 48.00%
Qtrly Earnings Growth (yoy): 162.00%
Trailing P/E (ttm, intraday): 26.96
Forward P/E (fye 31-Mar-08) 1: 13.24
These numbers looks very good to me even for the price I bought at 24.5. Opinions? TIA.
NVEC's management is reasonably good at execution and new product introductions. They are lousy at negotiating licenses or suing the snot out of infringers. The unfortunate thing is, once they sue Freescale, it will eat a hole in their earnings for a few years.
They are exceptionally lousy at promoting the stock and taking actions to boost the stock price. They need to be meeting with institutions regularly, go on road shows to promote the stock, attend investors' conferences, etc. They need to ally themselves with a large institution that will knock the snot out of the shorts when they start playing their little games. As I mentioned, they could also call in the existing shares and issue new ones with an associated warrant. That will totally hose the shorts, and the naked shorts will get french fried.
If this stock were not a candidate for SEC fraud for the year due to the illegal price manipulation, it should be at about $200 a share based on traditional value methods. It is in an incredibly hot (relevant) industry, it should earn about $1.60 to 2.00 this coming fiscal year and has a growth rate of well over 100%. If it traded at an extremely conservative PEG of 1.0, the stock would be at $160 to $200 a share. Currently, it's trading at a PEG of about 0.16 which is absolutely absurd. Of course, none of this matters because of the extreme and illegal price manipulation on this stock. Our incompetent management also doesn't help things.
If all the good things you said about the company are true, than how can you say management is incompetant? Sorry, does not compute.
>> "Our incompetent management also doesn't help things." <<
I agree 100%. Not to mention the high level of institutional ownership which represents long term interest.
Problem is the volume, or lack thereof. I think too many people got burned and the stock has fallen out of favor
Baker needs to put some lipstick on this sucker.
"I agree 100%. Not to mention the high level of institutional ownership which represents long term interest"
NO, hi institutional ownership represents future sellers. Rule of thumb for small/micro caps is ...you want in before institutional ownership reaches 20%
I'd prefer Dr Baker just run the company wisely, as he has been doing, so the earnings will continue to grow and the pps will take care of itself. $46 was at a million shares a day. What was that other than speculation and a liquidity effect?
The December quarter is the low point in the company's annual season.
Due to the fiscal year placement, there is a long time lag between the mid-January report for December, the lowest revenue quarter and the early-May fiscal year earnings announcement - a period of about 4 1/2 months.
So the "worst" news (which was actually pretty good news this year) is followed by a long dry spell.
On contrast, in 2006 we had a relatively close succession of revenues and earnings growth stories.
FYE 3/31 earnings announcement: May 3, 2006
FYE 3/31 annual report: May 22, 2006
Proxy: June 30, 2006
Quarter ending 6/30 10Q & earnings announcement: July 19, 2006
Quarter ending 9/30 10Q & earnings announcement: Oct 18, 2006
The September quarter growth reported 10/18 pushed the pps through $40 on October 23. Then the price fell back while we waited for more earnings. But the December quarter seasonality hurt. That's my best guess.
Sequential revenues and earnings: