I didn't state it very clearly. I wasn't thinking $9 by 2016. I was thinking about them talking $9 by early 2016. In the same way they started talking $7 recently. My last post is what I think could happen. Sorry for the confusion.
Let's think about this. Management is now talking in terms of EPS of $7 going forward with unspecific timing. Previously they guided in the same way to $5. They guided to $1.19 for the December quarter which straight-lines to annual EPS of $4.76 for FY2015. Many growth drivers are in place...we know what they are. So, my thinking is as follows:
FY15 EPS $4.75 - $5.00
FY16 EPS $6.65 - $7.00...applying a 40% yoy growth multiple
FY17 EPS $8.31 - $8.75...applying a 25% yoy growth multiple
I know the 40% and 25% growth multiples are debateable, but in light of recent yoy EPS growth, they might be very conservative. Nonetheless, this is the thinking that's gets me near EPS of $9. If anything close to this becomes reality, management will likely be talking in terms of $9 EPS in the same way they previously did $5 and $7 about a year from now.
My thoughts, fwiw.
So, you must have jumped ship on the move down from $59 to $44. That would have been an ill-advised move. Do your homework and know why the stock is moving down, not just that it is moving down. Sometimes the market uses a broad brush when it's not justified, and great stocks get hammered unnecessarily. That's when you buy, not sell. I bought the move down to $44, btw.
Recently, management floated their thinking that $7 EPS is on the horizon. This is up from their previous mention of $5. I believe we will hear them mention the idea of reaching $9...or very close...toward the end of 2015 or early 2016. I am looking forward to this one, and continue to be a buyer of dips and holder.
Thanks for the well wishes cheetah. It should be a good time in Dallas. Being the Cowboys fan I am, I've been to Cowboys stadium twice before...amazing facility. Should be a great time!!
I appreciate your comments, toast. Gotta believe the future for SWKS is very bright...as in $100+ per share in 2015. I think managements EPS talk of $7 could happen sooner than most think in light of all the things you mentioned in support of near term and long term growth. I am looking forward to them talking in terms of $9 EPS. We could start hearing that by the first half of calendar 2016.
Oh I see. Congrats on your new coach! He's in for a very rough ride to get started since he has no QB on the roster. Big project he has. I figure by the time he has a couple good players, the allure of NFL money combined with the difficulty of competing against Urban Meyer, will send him packing. Five years max, IMO. It will still be a cute little program, though.
Michigan State beat Baylor. Ohio State beat Alabama. Wisconsin beat Auburn.
I guess not everyone follows it as closely sports fans. That's cool, though.
Here's to a great year in swks, SVS!!!
The only real problem they had was a big one...5 turnovers. They had 538 yards of total offense despite those turnovers. With only two turnovers they may have had 700 yards and over 40 points. Turnovers will decide the championship game, IMO.
Appreciate it cheetah!! Buckeye Nation is happy today. I will be in Dallas for the game January 12th. Should be a good game, but not sure how to slow Oregon's offense.
Also, the Big Ten had a great day yesterday, including Wisconsin's win over Auburn. The SEC...not a good bowl showing at all. I'm also happy about that.
Heads up on Doug Kass. For 2014 he called for AAMC to double to $2000, and called it the stock of the decade. He said MONIF would triple to $3. And, he said AMZN would go to $500. Not exactly stellar.