Replies to post #394872 on Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

If SGTL retakes $25.30, we have a good shot at the $27/8 area. Just took a quarter from ERTS, today is not the day for longs. Also took a dime loss on MERQ.

[ayahuasca]

SGTL is due

I'd say overdue!

Not really sure why there is so little interest in this one. Not only did they beat numbers in their recent quarter they guided significantly higher. Yet the stock still found a way to shed 30%. PEG of under .5 if I'm not mistaken. I've been accumulating more shares at these levels.

[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.