Hellllooooo Pluvia-I am saddened that you of all people
have joined us.You have been missing in action for months,
other than your debut on TV.And you find a compelling reason
to pop in on the PLMD board.
I knew PLMD was to good to be true--the growth rates going forward--- revenue,net income,ROE,ROA,ROIC--increases.
the low debt/equity ratio--the long debt/equity ratio--the
low P/E,P/& PEG the lowest in this industry.
$ in millions 92 93 94 95 96 97 98 99 00 01
Revenue 2.8 11 22.5 27 24.8 30.5 73.8 104.8 156.9 220
Net Income -3.8 -3.9 -0.4 1.8 3.1 2.3 7.6 7.6 16.5 29.7
Cash Flow -3.2 -2.3 3.3 5.4 5.8 5.5 13.3 16.3 29.5 54.5
Taken from QUICKEN.com
• Insights: Given the above earnings and discount rate, PLMD must grow earnings at a rate of -9.8% annually for 10 years to justify its current stock price of $11.25. You can adjust the earnings growth rate and discount rate to see how they can dramatically alter PLMD's intrinsic value per share.
• Walk through: If we assume initial earnings of $31.9 million grow at a rate of 28.00%, and we discount those future earnings at a rate of 15.00%, we arrive at a net present value for the company's next 10 years of earnings of $603 million. To account for potential earnings beyond the 10th year, we estimate a growth rate of 6.00%, a discount rate of 12.00%, and we arrive at a continuing value of $1.99 billion. To complete the calculation we add these two figures together, subtract the long-term debt for PLMD ($2.90 million), and divide by the outstanding shares (13.0 million) to get a per share intrinsic value of $199.58.
• Considerations: Gauging the future growth and risk outlook of a company such as PLMD, however, is more art than science. New products, management, or strategic directions can fuel growth far above historic norms. Likewise, unforeseen setbacks can cut a company's future value in half. Have PLMD's earnings slowed or accelerated in the past year from its 5-year average? How fast do analysts expect it to grow in the next year or two? How great are the risks it faces? Be sure to check PLMD's financials and recent news stories on the company. Also compare it to other companies in its industry.
KEY WORDS HERE
Be sure to check PLMD's financials and recent news stories on the company
Be sure to check PLMD's financials and recent news stories on the company.
Be sure to check PLMD's financials and recent news stories on the company.
All I can say is thank you for your input its appreciated by me at least.
I'm outahere---Dennis
P.S.it was bad enough when Auric showed up.....
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