i think what you fail to realize is that this company earns about $3 per share and growing, so a move of $3 only increases the PE by 1 point!! this stock has a lot of room left to grow and there are signs that more people are discovering it.
You might ask yourself a few basic questions like should you hold the stock for the next EARNINGS REPORT or for that matter the next news release and Can YOU HANDLE THE DAILY AND WEEKLY PRICE CHANGES? In other words do you see good news ahead and are you willing to wait it out ? The current price is not good enough for me. I'm not interested in hyping the stock. I can't think of a better stock in my portfolio. JMO JERIS
The stock remains very cheap. The PE is well under 10. With the growth rate, that's amazingly low. The 4:3 split in a couple of weeks is a positive. While we don't know much about the acquisition, I trust management to have chosen wisely. The HK JV IPO could come at any time and is clearly not in the stock. Legislation mandating meters is spreading, making future strong growth likely. The stock had been held back by Kovens having to sell. That appears to have ended (though questions remain). When earnings came out on 8/14, it was further affirmation of the rapid growth being on track. The stock has risen at a gradual, non-euphoric state in my view and a further rise into the low 30s before year end is the most likely outcome.
I do agree that this is an interesting situation with the positives you highlight, I do have cautions, such as: 1. my tax-normalized eps on trailing 4 qtrs is approx $1.95; and since "eps growth" is complicated by a variety nonrecurring factors, I use the last qtr's top line growth of +16% as their multiple and get a lower target price in the stock. 2. I have no idea how to model or predict Hong Kong's contribution. 3. I never use the word "trust" in relation to any public company's management or performance, having seen too much horror. Re the acquisition, we know very little. Not only do managemnts experienced in M&A often struggle to integrate new operations, I see no prior experience here from wh to assume anything. 4. Insider buying might help with the unknowns and intangibles of this whole situation.
I have to agree that there is still a big up side in this stock. The PE is still very low. The potential for a big bump exists if the hong kong JV is ever finally approved for its IPO. There is also the wild card of the new acquisition. If all goes well, and the growth rate continues unchanged, there is no reason why the stock could not double even from here. IMO UUU stands for up, up, up!