If we can get $0.50 eps for the year i dont see how this stock could stay below $1.50, let alone $1.20. Anyways, most likely won't be known until end of March. Alot of things can happen in that period.
One of the things keeping the share price down is the fact that LTUS reiterated guidance of 21.4 million in net profit for the year. Since we already earned 18 million in the first 3 quarters, guidance is for 6 cents a share in the fourth.
Also remember last year the fourth quarter was a disaster when they only earned 5 cents.
Also remember the company has dropped the hint of 4th quarter bonuses and recently approved, but not issued 3 million shares to be used as executive compensation. I don't expect they will use them all, but we will see stock based compensation this quarter. This is one way for a cash strapped company to compensate and keep their top performers. It doesn't show up on the cash flow statement but will appear on the income statement.
Don't put your hopes on 50 cents. If it does happen, yes the share price will rise dramatically. In fact the shares are currently priced with the expectation of 40 cents - Anything better than that will be welcome news to all but the uninformed.
Finally, I do think 40 cents is a low ball number that they know they can beat. Under promising and over delivering is always preferable to the alternative. I expect 9 cents on a little better than 20 million in sales - 43 cents for the year.
I think they will also guide for 52-55 cents a share on close to 100 million in sales for 2011.