Sorry Alba, I'm not exactly sure what you are expecting Lange to do. I mean, anyone who follows the stock knows now that they have a great business model and a competitive advantage with their technology.
With an EPS forecast of between 6 and 7 cents this year, that would value them at between 90 cents and $1.05 based on a PE of 15, in the absence of any significant profit upgrade.
I realise that, as has been pointed out on here, that it's not unusual for a company to trade on a PE of much higher than that, especially a rapid growth stock. At the end of the day, though, it's only worth what someone is prepared to pay for it. Look at ZFX for example. They are trading on a PE of about 6.
You may remember a couple of months ago I posted that I thought they would NOT make 3cps forecast for 2007, but I thought they would significantly beat 6cps for 2008. Well, they missed their 2007 forecast quite badly, and that may have tempered enthusiasm for the time being.
Until we see evidence of the synergies and benefits of marrying all these businesses together, there remains a risk. The next quarterly report will be quite significant in that regard. Until then, I'm not sure what you could be expecting.
Remember, they are still 300% higher than they were a year ago. Not many companies can boast that.
NMS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
