still profitable and trading for 80 cents below book value, with no fake assets like goodwill.
let's see what happens.
would like to see management step up share repurchases and would really like to see a one time dividend
Pretty good considering most tech companies are missing and guiding lower.
Stellar balance sheet will protect downside, should go up based on decent results.
Would like to see a one time dividend.
whats with the crazy prints on this stock the last 2 days?
anyway, earnings tomorrow. Downside limited due to stellar balance sheet. Hopefully we can be inline or close to it.
if they had a bad quarter they probably would've warned by now. Unfortunately no one is interested in PSEM at the moment. Hopefully they can generate some interest with good results and maybe even a dividend
and revenues are starting to inch up. If revenues start to accelerate the EPS will grow exponentially since PSEM has only 22.8 million shares. Meanwhile you have fools selling a profitable company below book value and with over 5 dollars a share in cash and no debt. (drastically limiting the downside). Not to mention the share repurchase program they have.
By my calculations an increase to 35 million a quarter (only 2.5 million more than the mid range in this quarter) will result in an eps of 12 cents. Based on 40% gross margins, 11 million in expenses, 600k in interest on their cash and a 25 per cent tax rate, this is all based on the companies projections, not mine. That's a huge percentage gain from recent eps of 4-8 cents. A 40 million qtr would be about 18 cents per share. If you put a 20-25 multiple (and why not considering the growth rate) on any of those and add in 5 dollars a share and you have a huge increase in price.
A 10-12 dollar upside and a 1-2 dollar downside. Risk to reward is amazing