Savvy Trades and Investments

[wadegarret]

Nelson- AVNW

I don't feel using GAAP is correct way to value the stock. Thing is, on a non gaap basis, the company posted $.42 for the Sept qtr. after taking out $1M in one time items. The Dec qtr should be breakeven at worst, and then they said the Mar qtr should be better than the Dec qtr. Therefore I would expect that between the Sept, Dec, & Mar qtrs, to total around $1 in non gaap EPS. Then the June qtr will likely be around $.50 non gaap IMO. Overall I speculate 1.50 in non gaap EPS going forward from Sept 16 to Sept 17 vs a $15.50 stock price. Very cheap IMO with the kind of turnaround & growth potential- and don't forget the strong balance sheet. I think they could sell for a 15-20 PE going forward yet, so 50%-100% potential upside- my view.