@Cytew How did you work that out? From Technical point of view? From Fundamental point of view the forecast EPS for the year ending 31 Dec 2016 is likely to be in the region of 8 to 8.5 cents. The PE is 44 at the Current market price of $3.76. It means that the current maket price is well over price especially, when you considered that the NTA is only $1,01. It appears that everyone is buying on the assumption that the profit will return to $65 to $70m in the very near future.
If what the CEO said about the sensors shipment and the laser headlamp is true and correct the bottomline will improve in the first half of next year. As the CEO did not disclose the margin and the order they have receive, there is a risk that the company might not be able to achieve $70m bottomline next year.
Take care bro. From fundamental point of view this counter should be trading at 12 x forecast PE ie no more than $1.03 assuming that Dec 2016 profit will be in the region of $23m. I suspect no more dividend for this financial year given that it need $50m to reinvest into automated processing system this year to enable production to begin in the second quarter of next year. The market seems to have gone ahead of itself and price the share well alhead of it Dec 2017 profit.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Doggi
224 posts
Posted by Doggi > 2016-09-30 12:00 | Report Abuse
dompeilee, & I bought back some @ 2.80 still holding them