Vicor: Planned Revenue Growth Of 3X In 5 Years, Powered By New Products
Aug. 25, 2014 2:36 PM
I am initiating a price target of $26.00 on VICR. The current price is around $8.00.
I expect explosive earnings growth estimates of $0.52 in 2015, $1.10 in 2016 and $1.73 in 2017.
With tremendous leverage in Vicor's earnings model, the operating margins are expected to return to 20%+.
Vicor is supplying parts to a leading data farm (cloud) company.
Vicor has significant insider and company buyback of stock.
Vicor (NASDAQ:VICR) initiated with a strong buy:
I am initiating coverage on VICR with a strong buy rating and a price target of $26.00 a share. This target is based on earnings per share estimates of $.52 in 2015 and a 50 P/E ratio, which is supported by the forecasted 100% growth in earnings for 2016. There is very little liquidity in this stock and any good news will propel the stock price up substantially. Before today, there has been no analyst coverage on Vicor and they do not go on road shows or proactively present to the investment community.
Vicor has a plan to triple their revenue in five years, and this was discussed at the Vicor annual meeting and past conference calls. CEO, Patrizio Vinciarelli believes that after years in investing in developing their new technology, they are now in "harvest time." New products are expected to generate gross margins as a percentage of revenue in excess of 60%. With tremendous leverage in their earnings model, the operating margins are expected to return to 20%+. Vicor has a pristine balance sheet with over $50,000,000.00 in cash and no debt.
Insider and company stock purchases:
The company bought back $17,100,000.00 or 3,273,088 shares in 2013. The CFO, Jamie Simms quickly followed by purchasing 45,000 shares, and just recently the president, Dr. Vinciarelli bought 57,000 shares. Before this purchase, Dr. PV owned 20,699,128 shares, over 50% of the outstanding stock. Needless to say, there is very little liquid
It's interesting that at around 11am today a slightly down slug of 260K of FVE was sold at 4.61 and at 11:20am a 250K share chunk of SNH was sold at 23.50, again slightly down. Coincidence?
"[Infineon] would like to build a stronger presence in power management," says Liberum Capital's Janardan Menon. He adds the market has "high barriers to entry and strong growth prospects," a fact that also hasn't been lost on Texas Instruments and other industry players.
POWI is up 12% today. I hope this bodes well for VICR...
This is negligence on the part of management IMHO... Reporting senior housing financial performance is not rocket science and again Hoagland is getting paid way too much money to be this seemingly incompetent . . .
Something is very very wrong here.
Five Star Quality Care, Inc. Announces Intention to Adjourn 2014 Annual Meeting of Stockholders to September 30, 2014
NEWTON, Mass.--(BUSINESS WIRE)--
Five Star Quality Care, Inc. (FVE) today announced that it intends to adjourn its 2014 Annual Meeting of Stockholders shortly after the meeting convenes on August 21, 2014, to September 30, 2014, at Two Newton Place, 255 Washington Street, Suite 100, Newton, Massachusetts 02458, at 9:30 a.m., local time. The meeting will be adjourned to allow for the completion and distribution of Five Star’s Annual Report on Form 10-K for the year ended December 31, 2013. As previously announced, the 2013 Annual Report was delayed following the restatement of Five Star’s financial results for 2011, 2012 and the first and second quarters of 2013. The restatements were completed on April 15, 2014. Since that time, Five Star has been working to file its 2013 Annual Report and expects to mail a proxy statement for the 2014 Annual Meeting of Stockholders, together with a proxy card and its 2013 Annual Report, to all stockholders as of the record date for the Annual Meeting shortly after its 2013 Annual Report is completed. The record date for determination of stockholders entitled to vote at the adjourned 2014 Annual Meeting of Stockholders is July 14, 2014.
Interesting article. You should read the whole piece:
A Matter of Time for Health-Care REITs
We prefer the yield, stability, and growth prospects of the triple-net structure over RIDEA.
By Todd Lukasik,
Until the introduction of the REIT Investment Diversification and Empowerment Act of 2007, health-care real estate investment trusts simply owned property and rented it to tenants. RIDEA, however, allows REITs to directly expose themselves to the financial performance of the underlying health-care operations, instead of just collecting rent checks. RIDEA has brought changes to health-care REITs' profitability, cash flows, and return prospects--some cosmetic and others meaningful. Although triple-net leases have dominated health-care REITs' results historically, the rapid adoption of the RIDEA structure since 2010 has resulted in portfolio exposures of as much as 34%. The new structure has been a financial boon lately, as RIDEA-structured assets have enjoyed robust growth. However, RIDEA introduces the potential for variability in health-care REITs' cash flows and makes REITs responsible for additional expenses relative to traditional triple-net assets. Also, RIDEA transactions have generally been priced more aggressively than triple-net deals, which implies that faster cash flow growth is required to make the RIDEA structure pay off. As a result, we generally favor the yield, stability, and growth characteristics of the triple-net deals.
The Basics: RIDEA vs. Triple Net
Before the introduction of RIDEA, health-care REITs stuck to a simple model: Buy property and rent it to tenants. Since 2007, however, health-care REITs have had the option to buy property and--instead of simply collecting rent from a tenant--be financially responsible for the success of health-care service operations conducted in the property...
POWI is partnering with QCOM and will be very successful. Vicor should plug their expertise into the same quick charge approach to car charging outlets. Just a thought...
As I said, it's common for externally-managed REITs to have conflicts of misalignment and given the fact that Five Star has common ownership in the external advisor and the tenant (Five Star), I find the association to be troubling. Remember, external management incentives are aimed to increase assets under management and that typically leads to higher remuneration. (This snapshot is Five Star Insiders - source is Yahoo Finance):
I can clearly see the potential for the conflicts of interest in Five Star negotiating a suitable, stable long-term economic arrangement with SNH (and RMR, the management company). Why should these parties expose themselves to ongoing charges of self-dealing, and why does SNH have such a large exposure to a non-investment grade credit?
When looking at just GAAP data, Five Star appears to be a profitable company (see FAST Graph below); however, when you factor in the true amount of capital invested in the company, you can see that the company actually makes negative economic earnings. In reviewing the company's off-balance sheet debt, Five Star's ROIC is around 6%, less than its weighted average cost of capital (or WACC).
Can anyone comment on these as compared to Vicor's?
SynQor Announces its New Line of High Power Military COTS Quarter Bricks
Boxborough, MA – SynQor, Inc. announces the release of its Military Commercial-Off-The-Shelf (COTS) EXA Series of isolated and fully regulated DC-DC Converters. This new EXA Series offers up to 300W of power in a quarter brick package. These highly efficient (95% at full load), high power density DC-DC converters have a 28V nominal input voltage (16-40Vin range with a 50V transient for 1 second). They are offered in five different output voltages: 5V, 12V, 15V, 28V and 50V. Each output voltage has a wide trim range of +10% to -50%. The converters also feature a fixed switching frequency that provides for predictable EMI performance. SynQor's new quarter bricks are designed to meet MIL-HDBK-704, MIL-STD-1275 and MIL-STD-461 when paired with our MCOTS EMI filters. The Mil-COTS product line has also been qualified to MIL-STD-810.
This ruggedized encased package with an industry standard pin out is ideal for meeting the Military's "Size, Weight and Power" (SWaP) requirements. The EXA Series converter is a leading embodiment of SWaP in DC-DC brick power technology.
Size: 1.54" x 2.39" x 0.50"
Power: Up to 300W
Common Stock 06/11/2014 P 25,000 A $ 7.382 9,700,480 D
Common Stock 06/12/2014 P 18,874 A $ 7.632 9,719,354 D
Common Stock 06/13/2014 P 13,539 A $ 7.75 9,732,893 D
I concur with your thoughts and have a similar sense for FVE future. There is some underlying value greater than the stock price is now, but it will take someone who is willing to work at unlocking the value other than the parties who now have a conflict of interest in developing and yielding more for others than themselves… I have a significant holding and will follow closely...