$70mm plus next year? Well, that strikes me as being down from past guidance of $100mm. Nevertheless, $70mm would be great and he left room on the upside (and they have done a great job of exceeding projections).
Did he give guidance on margins? At 20 percent, 70mm would be 14mm in earnings. With a share count of 700mm, that's 2 cents EPS, or a forward P/E of under 1.
With a share count of 200mm (which is above the number they have in the past fed to investors), that's EPS=7 cents.
Unless the OS is going up, the stock is way undervalued here -- regardless of what the explanation is for why the buybacks don't seem to be reducing non-RM shares.
