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Xyratex Ltd. Şti. Message Board

  • zoomlik zoomlik Jul 2, 2010 7:45 PM Flag

    from earnings transcript

    In terms of forecast, as I said, I would expect the end of Q3 we are giving a cash outlook of $80 million. So ignoring the factor, the main payments I guess, yes we are looking to convert the majority of profit which is delivered in 3Q into cash and then again in 4Q we are projecting in excess of a $100 million in cash so again we will be looking at almost all of that profit heading into cash.

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    • And your point is?

      Cash is useless, it gets no play in valuation. It gets them 1-2%, because they have to invest it most conservatively. What else would they use it for?

      No company gets any stock valuation credit for cash, it just makes them a more attractive buy out candidate.

      As to the valuation, it was cheep at 15. I sold right after the earnings release (wasn't it supposed to be on Th? I was just lucky to be at my system when they announced on Wed).

      When I saw the tick up in AH, I followed my current rule, sell all upticks.

      XRTX will drift down further until people get convinced we are not heading into another recession. I hope that Q2 earnings reports will quell the panic.

      I may re-enter XRTX at below 11. I know the current price is stupid low, but I have a list of about 100 stocks that are stupid low.

      Too late to sell now, I think, but I also don't expect a bounce soon, and them getting a cash hoard does nothing for the stock price.

    • It beats me why the shorts are picking on this zero debt, rapidly growing, blowout earnings, raised guidance, could-be-bought-out, PE=3 company ...

      ... unless it's to steal the shares of the weak hands who have panicked and sold.