Savvy Trades and Investments

[wadegarret]

LITE- looks better every time I look

Tonight I did more reading, and LITE's story going forward just gets better.
https://finance.yahoo.com/news/lumentum-weak-outlook-red-flag-031200595.html

It appears LITE is predicting double the revenues for the second half of 2018 vs 2017. I went back to the Income statement and put in some numbers. It appears, even using a 33% tax rate(they had zero tax in the Dec qtr 2017), and even assuming 50% more in S,G,&A, and using the same 32% margins as in the Dec 17 qtr, and 64M fd shares, LITE would make $3.30+ in EPS just for the Sept and Dec qtrs 2018 ! Thing is, 2019 is being projected to be even better ! Therefore it appears LITE could easily make over $5 for fiscal 2019(ended June 30, 2019), even using a 33% tax rate ! No wonder this stock has risen 38% since earnings, and went up almost every day for the last two weeks, despite the market downturn. The growth potential for their recent AAPL contract for 3D sensors for the Iphone going forward is huge for LITE. My price target just went up to $90. I just got in at $58, regardless of the 38% spike in two weeks. That is, with 50%+ more upside potential, I see no reason to take the chance the stock will retrace some of it's recent gains.

Wish I would have noted all this on earnings day when the stock was under $50. Oh well.