I think that the bottom line is many are still stuck in the mantra "the PC is dead". They also discount the Intel Server business which is very strong. They refuse to accept that the PC business is growing again. James Covello is famous for his hatred of Intel. He has had a PT of 17-18 for years. I have tuned them out years ago.
Second day in a row that they banged it down at the open. It smacks of stop running. Take out a stop at 44 get the sell orders to kick it down to 43.50 and scoop the stock up.
Seems like only yesterday, really 2 years ago that pudits were saying sell INTC and buy ARMH. Some folks don't get it. INTC is the gorilla of the chip world. INTC is a monster. INTC will dominate the mobile space. It isn't even a question of if but when. ARMH will suffer like AMD suffered. A long agonizing death. It could take years but it is coming.
Why do you say that? Forward PE is 15 and that is before new guidance. A 15 PE seems very reasonable for a company with a dominant market position and growth that is accelerating.
I put a $200 price target when I bought my shares back in February. Next year they will be earning over 14 dollars a share. I calculate fair value to be a 14-15 multiple to earnings. Do the math and you get around 200. The company should also be able to easily sustain a dividend of 1 dollar a share per quarter. The dividend will be raised to .90 or better per quarter next year.
William Blair analyst Jason Ader reiterated his Outperform rating on Mobileye N.V (NYSE: MBLY) following strong results with revenue topping the Street estimate by $4.4 million, while earnings were in line with expectations.
"Profitability was robust, as expected, with net income margin and free cash flow margin of 28% and 30%, respectively," Ader noted. "Overall, the quarter was strong and we reaffirm our high regard for the company's business model and future prospects."
Ader likes PEG ration as the best way to value the stock. The current PEG ratio on the firm's 2016 estimates is an attractive 1.3 times, versus the peer group PEG median of 1.7 times. Using a slightly different approach, they forecast non-GAAP EPS of $1.34 in 2018. Applying a 50-times P/E multiple on this level of earnings, shares would have about 50% upside over the next three years.
For an analyst ratings summary and ratings history on Mobileye N.V click here. For more ratings news on Mobileye N.V click here.
Shares of Mobileye N.V closed at $46.75 yesterday.
Really nice to see the dividend increase. I really wonder why INTC didn't increase at least a penny last year. I know they could afford it. So now it is 24 cents. I would have thought 25 would have been better. I bought MSFT at the same time as INTC. At the time, MSFT and INTC dividends were the same 22.5 cents. Now MSFT is at 31 cents.
Not really sure what your point is. If you are trading the stock the fine. You made a profit. Personally, I think there are better trades out there. Personally, I don't care what the stock does post earnings. It could go down 10 points today and I wouldn't care other then think about buying more. I am an investor not a trader.
I have been buying and selling stocks for years. I see this all the time. Folks get jazzed about an IPO and pile into it driving the shares up. Then months later the interest dies out and the stock goes down. Typically, 3-6 months after an IPO is the best time to buy. Once we can get all the momentum folks out of the stock then it will trade on its fundamentals. Support is around 45 and there is a bit of resistance at 50. The stock may be around that range for awhile till the momentum crowd gets flushed out. People sold before the earnings and are selling after. These are "weak handed sellers" as they say. Despite the fact that the stock is down today, I actually liked the trading action. It went right down to the support level and held. There are willing buyers at 45. I plan on holding this for years despite what the price action is.
I don't think you understand what I said. They topped revenue estimates by 10%. They actually had 70% revenue growth YoY. Support for the stock is around 45 and you got pretty close to that today. That was your buy point. Personally, my position in this stock is pretty low. It makes up around 1% of my portfolio. To me it is a spec stock and that is how I treat it. I increased my position by 25% after the earnings release. I don't see it falling below 45 but if it did, I would look at buying more.
It certainly is a volatile stock. I said it before on this board, the stock is pretty expensive on a valuation basis. In in-line EPS doesn't cut it with some folks when you are dealing with such an expensive stock. That said, I think people are overly focused on EPS and certainly that is why it is down. Smart money is focused on the revenue growth which beat by 10%. The wrong will be corrected soon. I bought more shares.
I think you are overly focused on EPS. Yes, they met EPS and perhaps that is why it is off a bit this a.m. With young fast growing companies, you need to be more focused on the revenue numbers and they topped estimates by 10%. The rev number is far more important.
The float is pretty small compared to the shares outstanding. There are 5x as many shares out of circulation then in. It isn't going to change the EPS math but it will depress the stock price.