Met with company today at Roth Conf. Very impessive CEO in charge here. It's early, but I believe their is a high probability of this company executing on its new biz model and if they do this stock will be a 10 bagger or more over the next several years. the beauty is while you wait the legacy biz is stable and keeps the value of the stocks downside to a minimum..
The estimates for 2014 are way to low. I think around 3.50 is about where it will come in, and perhaps more. what many are missing here is that their newer products like time stamp and communication products will also carry higher margins at least in the first couple years and drive operating margins higher still, on exploding revenues. As for the stock we are just beginning to get found by institutions. We are just transitioning from the value guys to now growth guys buying in. With the market cap soon to cross the 500MM barrier that will lead the way to a whole new audience of funds as we're graduating into a real small cap stock instead of a microcap. A 30 plus P/E on 2014 EPS is not at all crazy for a stock with 27% operating margins growing at 50% top line. As for Q1 I'm expecting revenues of 22.5 MM and by Q4 we could be north of 30.0 MM
The stronger balance sheet also allows them to go get bigger license deals as bigger companies won't do business if they worry about your solvency long term. Now with more than 15 MM in cash that issue is off the table and now they can hunt with the bigger dogs. I expect to see more multi million dollar deals over the next year
Strong demand for the secondary. They did it in one day and the full over-allotment was exercised.
The company has a very strong CEO, and that will drive good decision making with these funds and since everything flows from this, good things likely lay ahead.
This is a great business in the first year of a multi year up cycle. AFOP has about 70% of their revenue coming from the fast growing Data Center markets. The migration to higher Gb speeds will continue as the need for bandwidth continues. They have a 40% gross margins with over 24% operating margins. This is a well run business and growing top line by probably 25-40% CAGR over the next several years. If you do the math and look out long term, in 3 years from now the stock should be a good deal North of today's valuation. Short term sentiment can do anything to a stock, but a good business will eventually always lead to a fair price. What to price a business with this margin leverage growing by strong double digits in a hot sector. I would say a conservative intermediate term valuation would be at least a 20 P/E. This stock from the 12's "may" have a shot at tripling or more over the long term.
I have placed trades successfully all morning thru TD Amer. without any problem. Must be specific to you. I just placed a test order right now and no problem at all
The offering price may indeed be close to today's closing price as many secondaries seem to get done around the 50 day moving average as a fair price. Also in the coming months we will mostly pick up additional analyst coverage for better or worse. This proceeds will almost certainly be used for an acquisition, probably US based and its possible to pick up our new CEO in the process
Yep, SILC has built several new product lines that will take the company to 200-300MM in revenues in 5 years from now. In five years assuming 250MM in revenues that would put eps at roughly $8-9.00 , providing some nice upside over the long term here...
2 minds think alike. Are you on ATTU also hindenburgdown.... ATTU looks to be well positioned and management is strong.
I like the word "wave"
We also expect this successful deployment of eFLOW5 with its highly flexible and configurable embedded Accounts Payable workflow to be followed by a wave of successful such implementations, not only among Oracle Applications customers but across users of any and every major ERP solution, both in the APAC region and around the globe."
Just looks like some funds selling and buyers starting to clean it up, hence the higher volumes. Most funds nowadays use VWAP trades instead of doing blocks and the late trading like today is getting volume done at the VWAP price zones. No games. Starting to look like the lows are being carved out and we should resume higher soon..