Earnings guidence issued today stating: "Thursday, 13 December 2007..For the full year, we expect EBITDA growth of around 20% and EPS growth of around 15%."
Last years EPS was 46 cents. This years EPS will be 46 x 1.15 = 53 cents.
Today's comments did not sound super positive.
Therefore BKN, which has been trading as a "growth stock" on a PE ratio of aoround 20, may settle or bottom on a PE ratio of 16.
16 x 53 cents = $8.48.
I myself would not buy today because this news will also be in the media tommorrow and have a strong impact will potentially more selling.
If it was me, I would not buy over $8 (however, I am not that keen to buy at all!!)
BKN was trading at $15 or, on a PE ratio of 20, forecast EPS of 75 cents for 2008, which was an expected profit growth of 63% for 2008. (lol)
Some folks were very optimistic or maybe need to learn about fundamentals.
Where do you learn? I taught myself. You only need to be able to divide and multiply.
BKN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held