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Should CompX $CIX be trading closer to $14? Valuation analysis & fundamentals suggest so: fair value
Agreed... this valuation analysis highlights +24% upside potential... buy on today's selloff?
source
Thinking of buying $BEAT on sell off... Trading at 25% discount to fair value
http://bit.ly/2cXjgsq
Earnings today and little margin of safety. Would buy if stock hits 80
Late here but IMO this stocks got nice upside for long-term holders. Should be trading closer to $18 per share based on underlying cash flows.
Earnings miss today would be a nice entry point opportunity
Really like YUM Brand's assets but wish it weren't trading at such a high valuation.
Think underlying fair value is closer to $85 via this 5-year DCF
Good call!
Buying opportunity for WGL Holdings? Stock's down 3% today but looks 20% undervalued
Anyone thinking of adding shares of AEO after stocks drop today? Would be a long-term play. Think the value is there http://bit.ly/2cO6Se5
Gilead $GILD looks significantly undervalued! My conservative DCF shows +40% upside: http://bit.ly/2cO7YXo
Time to buy?
Agree. Although Cantor and Oppenheimer downgraded today... good buying opportunity to load up!
Buy Infinera INFN stock right now?
Overview
- Stock's down almost 50% YoY - hasn't been trading this low since Aug, 2014.
- Recent decline due to Management's weak Q3 earnings guidance on 7/28 - citing weakening demand in North America and Europe
- Following guidance, stock was downgraded by J.P. Morgan, Nomura, B. Riley & Co. and Raymond James.
INFN is at its bottom
- Weak growth is a timing issue (new product launch is late by 6 months) not a structural problem with the business.
- Q3 will be the low point for revenue. Q4 will be marginally better and the growth starts to pick up in Q1 '17
- Prior to headwinds, revenue had grown +20% the last 3 fiscal years and broke into +10% EBITDA margins this last year.
- Infinera is pushing their (proprietary) technology into new markets that are huge (metro aggregation), or young markets that are growing rapidly (60%+ GAGR) and are forecast to do so for several years (small form factor data centre interconnect).
- Significant insider buying in the open market validates upside.
Valuation
- INFN ltm and fwd EBITDA multiples are trading below its peer group: chart
- The stock current market valuation implies 0% growth (not even inflation)
- Using a highly conservative growth forecast (nowhere near historical levels) - the stock still should be trading closer to $11 based on a future cash flows. My DCF analysis: link
Due to reasons mentioned above, seems like a great entry point that could easily achieve 20-40% gains.
Love to hear what everyone thinks...
Added shares of Apple when it was in the $90's a few months ago. Not necessarily buying at these prices but still think shares are fundamentally undervalued.
My conservative 5-year DCF shows a $130 fair value. I expect the stock to reach that over the next 3-12 months. At that point I may sell...