The author goofed on one thing. He forgot about the 1.82M shares they bought back on the open market, in addition to the shares bought back in the tender. Instead, he incorrectly reported that they still have $84.4M remaining in the buyback fund, when it is really more like $64M. Also, he seems a little biased or pumper like when he doesn't even make mention of the lost production days due to the new computer system installation snafu. It would have been better to bring it up and emphasize that it was a one time event and will (according to mgmt) facilitate future growth. I agree that the stock is grossly undervalued, of course, and therefore is a buy, especially if you have a 3 to 6 mo. outlook. Could it go lower before higher, that's the question? If it goes lower it's a SCREAMING Buy. It would have been nice to show a history of how much SWHC has sandbagged on previous next quarter guidances and to estimate what the EPS would have been next quarter with the non-recurring event of the computer mishap removed and to also estimate what EPS would be if they buy back the same number of shares in Q2 that they bought in Q1.
PS: for Q1 they sandbagged EPS by 12.8% (based on Q1 EPS act. of 0.40) at the midpoint and Rev by 4.0% at the midpoint.