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stock severely undervalued a screaming buy. repost of my detailed post on Yahoo
current price ridiculously low 16-Apr-08 07:06 am current valuation looks insanely low and stock seems to be suffering from total apathy. Let's look at some of the facts starting with valuation: trailing PE 23 forward PE using '08 est 12 forward PE using '09 est 8.4 PEG ration per yahoo .62 earnings growth est. 100% 2008 42% 2009 rev growth est 64% 38% 2009 Gross margins about 60% very little debt The company is the only pure play in the very fast growing technology of MEMS(Micro-electro-mechanical systems) which is early in what appears to be strong secular growth. The company does 64% of sales in rapidly growing Asia and only 20% to currently sluggish NA The company does a bit over half its sales to the mobile phone market which is undergoing some relative sluggishness at the moment. They are however rapidly diversifying to numerous areas including automotive, consumer and industrial. They have a deal with the Olympic committee to produce a waving LED strobe olympic torch product that will sell in something like 5000 stores in China. That sounds mostly non-recurring after the Olympics but I think it likely that this product will open up a lot more consumer business This product uses an accelerometer utilizing their technology as does other things like air bags their technology is in. This company is either a raging buy or I'm missing something. Needham has a buy with a price target of $9 Jeffries has a buy with a PT of $10. The company IPO'd in Dec with a $10 price and apparently got lost in the market turbulence. I've now finished accumulating a position at $6 which was not easy because the stock is very thinly traded and illiquid and the MM takes advantage of that fact. There is a lock-up expiration in June but the price looks so ridiculously cheap that I decided not to wait for then to buy. |
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