The revenue growth of FEI is expected to stay strong for the next several years. When you add to that the improvement in operating margins that should produce excellent earnings growth. Ask yourself why the stock is so cheap? This is due to the thin float.
Bayside, could it be that FEI is suffering from the overall down turn in the TELCOM sector and a potential slow down in potential end-user demand for various components, which could include those made by FEI. Who is to say that the reduced demand for components will not effect FEI. I certainly hope not and have taken the opportunity to add to my position at these prices. However, absent some guideance from Joe and Martin, we will not know until earnings and projections for next quarter are announced. And the market hates uncertainty as we all know. If would be nice to know if FEI management has any projections on if the current market trend will have an adverse impact on the near term demand for their products. Any insight or comment?
From all that I know they are constrained by capacity. Congratulation on being smart enough to add at these levels. IMO, you can double your money within a year. FEI is playing catch up with the demand.