Apparently, ZBRA overstated prior quarters'
investment income by about $.02 per share and adjusted this
quarter's statement by that amount. There was also a
one-time legal charge not associated with the merger that
was about $.03 per share. When you take out these
costs, the actual operating income was about $.71 per
We can virtually be certain that ZBRA will take a
bit of a tumble today with profit takers. It has
gotten ahead of itself and may correct 2-4 points over
the short term. I'm still holding out for at least
$65 which may come sooner than I thought.
Coming upgrade(s) seem a good possibility. The
earnings were so bullish that in this market, the stock
really does look attractive. It can take a little while
for institutional buyers to get in gear, so a bit of
a delay was predictable. Also the breakout into new
high territory has got to excite the chartist types.
Of course, the stock tacked on 2 points in the final
half hour, on not a lot of volume, so it may be a
little ahead of itself.
I know zbra issued a stellar earnings report late
last month, but today's move (especially toward the
end of the day) seemed unusual. anybody know why.
I've been a steady buyer for the past 4 months
Zebra absolutely hit the hide off the ball.
Tomorrow we see whether the stock can jump 25% like SBL
did last week. We'll need table-pounding upgrades
from high-profile analysts. A stock buyback program
What was the one-time legal charge
In the conference call, ZBRA would not describe
the legal matter as to which the one-time charges
related, but emphasized that the matter was
ZBRA was asked about a stock buy-back program and said
it was not considering such a program. Instead, ZBRA
said that it will likely try and make another
Unfortunately since the Eltron merger was a
pooling they can't buy back stock until 2 years after the
close which is a way off. In the interim they are
accumulating one big pile of cash(now over $200M). If this
stock doesn't hit $60 soon I will be very surprised. In
a market where most companies that are doing well
are overpriced , Zebra seems to stand out as being
relatively cheap. I would assume the Street should raise the
'00 projections(which I think are currently around
$2.60).25 times that number which is pretty reasonable puts
the stock at $65. This is one great little stock and
I intend to hold it for a while. I only regret that
a few months ago when it was around $25 I didn't
buy more. But I've made worse mistakes in my life--at
least I bought some.