DragonWave Inc. Message Board
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valuation
Sales are now running at an annual rate of over $160m. The market cap is half that. It's hard for me to see why this business should be selling at less than one times sales, which would put fair value for the stock at $5.
ByronSentiment: Strong Buy
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I can name contract manufacturers that are selling for close to 0.1 of sales. Using your methodology this would put the valuation at 50 cents.
- 1 Reply to cohsgrad
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This isn't a contract manufacturer or a grocery store. DRWI is the leader in packet microwave, offering differentiated products with capabilities that others don't have. Also growth in mobile broadband networks is way above growth in other sectors of the economy.
ByronSentiment: Strong Buy
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Thanks everyone for these posts. I had a chance to catch up. You guys know better, but it seems
that this news it really upbeat for the company and it is on track with its guidance going into next
year.
That $5 value would be super to see happen, because, I could use the extra money to pay for
finishing my master's in nursing. Plus, I am intending to pursue a nurse practitioner course and
move on higher in my career. Keep up the good news everyone!Sentiment: Buy
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I do think you nailed it that we can foresee that the company is on track to have rising revenues going forward, and they smartly figured out a cost reduction plan that was put on hold from taking effect on last March 1 as the NSN deal put matters on hold in that regard. All of today's news
is bullish and should kick in buying interest.Sentiment: Strong Buy
- 1 Reply to jopocop
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Well that sounds nice. Does DRWI have a good track record with regard to smartly figuring out cost reductions? What percentage of employees is this?
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Yes, and under accumulation since last Thursday. See the chart, flatline. Was brought down Wednesday to allow this accumulation.
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