Seems a bit odd, but here's a few bits from the report:
...We believe PPO's margins peaked in 2011, and see severe risk to the company's operating margins in 2H12/2013 as pricing pressures mount (PPO is currently ramping 5 new lines for a cost of approximately $334mn, which we believe will take its annual capacity from 74.5mn square meters in 2Q10 to 240mn square meters in 4Q14, requiring elevated OPEX). As PPO's margins begin to contract (a dynamic we anticipate will emerge over the next 6 months), we expect the company's multiple to debase. Applying a 12x multiple to our 2012 EPS estimate of $2.17, we believe the stock is overvalued by at least 54%...
This is one of the most irresponsible kind of analysis coming from an analyst that I have ever seen. I am not questioning his opinions, but if he wants to have any credibility then he needs to provide a lot more logic and facts that lead to his conclusions. Is the demand for battery membranes going to go down than the recent trend? With all the new hybrid and plug-in electric cars coming out what facts does he give to support the drastic reduction in margins? Where did he come up with a nominal PE of 12 for this stock. It is outrageous that a person puts up a shingle and comes up with such shoddy unsupported analysis.
So much for the future. I mean the report was out yesterday; I'm wondering whether the Street's tag from this morning including Johnson's negative take on the insider sales since Jan of last year might have given the shorts more ammo. Still way overdone.
he campares polypore to the solar indus which had a great fall.there were thousands of makers of solar cells around the world but only three can make the product that POLYPORE MANUFACTOR.i THINK HE HAS BECOME PUBLIC NOW BECAUSE 1.EARNINGS ARE GOING TO BE OUT FEB 23 ANDTHE CHART HAS FORMED A PERFECT SAUCER SHAPE OR CUP WITH HANDEL AND HE PANICKED.POLYPORE HAS THE PATENTS AND KNOW HOW FOR THE EV SEPERATERS. hAVE SEEN ANYBODY ELSE ENTER THE MARKET? THE ANSWER IS NO, BECAUSE ENTERING THE MARKET IS TOO HARD