pfs- find me one other company on a major exchange that keeps increasing revenues qtr after qtr, and is increasing earnings to the tune of $.10+/qtr, that sells at a 4 PE going forward !
When GV was making $.10/qtr with the CREZ project in 2012, the margins were much higher than they are today. I believe those margins were unrealistically high. Also the tax rate was much lower then as well. Still the stock got to over a 10 PE going forward. With revenues/qtr up 50%-75% over CREZ revenues/qtr, and with lower margins and a higher tax rate, yet the company still making around $.10/qtr, I believe a higher PE is warranted. A conservative PE going forward at this point should be around 12 for the consistant revenue growth/qtr GV is showing. Therefore, IF the company can continue posting $.10/qtr(assuming normal tax rate of 37%, and excluding one time items), I believe around $5 is a conservative target.
gopp- The June qtr was much better than $.05. It was $.06 from Continuing operations, plus there was a $1.2M non repeatable charge, plus the tax rate was 46%(much higher than the normal 37%). All in all, the qtr was more like $.09 !
Hopefully they will continue that. Here's what the CEO said in the earnings PR...
John H. Sottile, President and Chief Executive Officer of Goldfield said, "We have now substantially completed our unprofitable Texas projects and have accomplished a reorganization of this operation. This will permit us to seek other projects from new and existing customers. Fortunately, our work outside Texas has remained strong. The general demand for electrical construction services is positive. Our focus is to achieve operating efficiencies, improved profit margins and to secure well qualified labor to take advantage of these opportunities."
They said they don't generally don't give it, and the only reason they gave it in preliminary Q1 & Q2, was because they wanted to assure investors that the business was still doing well, despite the supplier issues at the time.
I have been adding every single step down all day, since the open. I plan to continue to average down for as long as the sellers allow.
Heck, they just recieved $15M in royalties to start, and $3M this year from another drug they have in a Russian dea. That's $18M, and we've just started. So going at the rate of $.30 EPS/year already, and the stock can't get past $2- give me a break !
Heck, most companies that got a worldwide distribution agreement with Novartis would have gone balisitic. I don't get the muted response. Just keep buying all the way down as low as they want to take it. Welcome to the games.
Hweb- what margins do you expect going forward for their proprietary service revenues ? I mean I think they were 93% in the Mar qtr, and then a drop to 63% or so in the June qtr- is that right ?
sadiecc2- Please give me a link for the updated Baupost ownership of 25.79M shares. I couldn't get past the 3/31/15 number of 22.3M on Nasdaq.
not in Q2. Why ?
Their data segment represents the bulk of their revenues, and when asked, they said one customer represents 55% of those revenues. They said in the CC that as of June they have something called a Vendor Managed Inventory Program with their largest customers. They said that they ship product to a VMI warehouse, and revenue is realized as the customer takes out Inventory. They said that book to bill importance is minimized now that this system is in place- I don't get that.
I mean without knowing what the book to bill, or at least the backlog numbers as of June 30, how can we know how meaningful the Sept qtr guidance is ?