This is just based on the financials so there of course may be more to the story than what I see.
The quarter actually looked pretty lousy.
Operating income was just 4.9 million this Q.
If you go back a bit operating profits were actually better at lower revenue levels. When you see sales growing and the operating income shrinking I view it as a big warning flag. Typically this shows a company growing beyond its capabilities to manage the company.
SGA seems to be out of control up to 12.6 million this quarter.
Balance sheeet is pretty awful as well.
Assuming they can continue to repeat at the current level after factoring out gains on derivatives and do say .17 a share over the next year that puts them at a forward PE of 10.
For a company not showing any real earnings growth over the last 12 months with a poor balance sheet I have a hard time seeing it as a big value in that range especially given the plethora of companies with better sequential growth,balance sheets and PE ratios.
Based soley on the pattern here my bet is revenues flatten and SGA continues to rise resulting in smaller profits or losses.
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