Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Girlfriend, I am trying in vain to find out what is the fundamental reason for SGTL's weakness. Sure inventory blew from 19.4MM to $37 MM, but with sales at a level of $99 MM (though analyst estimate only $90 MM for the current quarter, I know not why). It is about a month of sales, and in this business you'd better have a little excess inventory or you may lose some sales. Receivable are at a more or less "normal" 56 DSO. PEG, however is at .47, trailing PE at 12 and forward PE (to Dec 2006) at 9.51. That seems "cheap" to me. Any rationale for the TA being so lousy and the stocks inability in this ramp to take out $25.30? I am losing patience with that one.