Replies to post #48 on Logitech International (LOGI)

[FUNMAN]

My buys were between $6 - $7.35

I feel greedy not taking anything off the table, but I don't see LOGI slowing down. They are firing on all cylinders.

Sales continue in the PC arena, and the high profit new stuff is just kicking in.

LOGI is growing Free Cash too. More institutions might sit up and take notice if LOGI establishs a more regular and sustainable dividend.

LOGI is being creative and innovative. It's almost like a "text-book" case study that's going to be taught in Business Schools in the near future.

I see the next presentation as laying out more great stuff to come. If the next financials afterwards are another big step forward, I see LOGI moving up and through the $20's in 2014.

[FUNMAN]

16.29 Up 0.19(1.15%) 12:07PM EST - Nasdaq Real Time Price

How pretty is that? :-)

[FUNMAN]

This ZACKS article is interesting in the context they use, and what I see independently in the sector.

LOGI isn't a screaming buy but with the upward analyst revisions to an annual EPS of 71¢, the forward PE comes down to 19.

What makes this compelling are several things I have watched very closely:

1) When the LOGI excitement of the turn-around was in full swing, the PE was so far ahead of itself, at one point the PE was well over 50. That's crazy scary and can only be assigned to a growth company.

2) The LOGI turn-around is firmly in place going on two years already, and continues to be implemented.

3) The LOGI share price is more than $2 below it's 3 year high reached earlier this year in February.

4) The chart below only goes back 5 quarters. What's compelling are the consistent earnings beats.

EARNINGS SURPRISES

http://investing.money.msn.com/investments/earnings-estimates?symbol=LOGI

DESCRIPTION (6/13) (9/13) (12/13) (3/14) (6/14)


Estimate- 0.11 0.05 0.14 -0.01 0.06

Actual 0.02 0.17 0.32 0.10 0.19

Difference 0.13 0.12 0.18 0.11 0.13%

Change +118.18% +240.00% +128.57% +1,100.00% +216.67%


With the PE valuation coming in-line, any EPS beats are going to finally start to drive the share price up again. LOGI's fundamentals have finally caught up with the share price.

Why Logitech (LOGI) Stock Might be a Great Pick

August 20, 2014
by Zacks Equity Research
Published on August 20, 2014

One stock that might be an intriguing choice for investors right now is Logitech International SA (LOGI - Analyst Report). This is because this security in the peripheral equipments space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.

This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the peripheral equipments space as it currently has a Zacks Industry Rank of 17 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.

Meanwhile, Logitech is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.

In fact, over the past month, current quarter estimates have risen from 16 cents a share to 17 cents a share, while current year estimates have risen from 66 cents a share to 71 cents a share. This has helped LOGI to earn a Zacks Rank #1 (Strong Buy), further underscoring the company’s solid position.

So, if you are looking for a decent pick in a strong industry, consider Logitech. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.