wade: SWTX
There are plenty of risks with SWTX, but I think there are fewer stocks than you imply with a forward PE of 5. Value is getting tougher to find these days. I've had most of my success with low PE stocks. In fact, I think the biggest winner from this board YTD is WGMGY, up over 200% since Jan 1. The PE was way too low on that stock, and the market has corrected for it ! Low PE stocks can be a bonanza, and I've benefitted greatly from this board. WGMGY is just one example.
Big revenue growth is not in the cards for SWTX. ASP's are dropping significantly for their plasma displays. But adjusted for special items, management indicated that EPS would have been $0.15 for 2004. If they meet the high end guidance of $0.25 in 2005, that's 67% bottom line growth with a PE of 5. Of course, that's an optimistic scenario, fraught with potential pitfalls. Who knows how high the price of Indium will go ? Q4 gross margins are at a peak partly due to special circumstances, and not likely to be repeated. But they're not forecasting 4x $0.10 or $0.40 for 2005. If they did, the stock would be zooming.
I'm not getting back into SWTX today, but may take a small position if it dips enough.
