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Re: spec machine post# 105024

Tuesday, 09/10/2013 4:06:25 PM

Tuesday, September 10, 2013 4:06:25 PM

Post# of 107353
Hey guys! I'm new to the board and glad to be here. First question, how is DPDW not priced >$5 pps? I'm seeing FY2013 revenues coming in at approx $35 mill and based on their 6 month profit margin of 8%, the stock is deeply undervalued. Using Dril-Quip's P/E of 30x, my PPS forecast is in the $5-$8 range.

a) $35 mill FY13 revenue x .08 PM = $2.8 mill/ 10.3 mill O/S = 0.27 FY13 EPS x 30x P/E = $8.10 PPS.

b) $35 mill FY13 revenue x .08 PM = $2.8 mill/ 10.3 mill O/S = 0.27 FY13 EPS x 20x P/E = $5.40 PPS.