Post by Wiseman213 on Apr 8, 2004 6:50:07 GMT -5
STEC closed up 48c @ $5.25 on a significant late-day rally testerday. The technicals as well as the fundamentalls are coming together at the right time for STEC. STEC could easily double/triple this year. Please do your DD.
stockcharts.com/gallery?stec
Simpletech Inc. (Nasdaq: STEC) is an undervalued DRAM and flash memory manufacturer. An industry report issued yesterday stating tha DRAM memory prices are escalating probably added fuel to the fire.
www.theinquirer.net/?article=15195
STEC is and undervalued fast-growing profitable company currently trading at about 60% of sales. The industry average is about 3 P/S. STEC has $76.4 Million in cash and cash equivalents... and NO long-term debt. The current market cap is only $180 million. Insiders own over 50% of the 44 million O/S shares.
STEC recently posted a profit on 19% Revenue Growth for 4Q2003 compared to 4Q 2002. Revenue growth in FY 2003 was 36% compared to 2002.
STEC's current guidance is for full-year 2004 revenues to increase by 25 % to 35 % from FY 2003 revenues of $221.8 million.... or about $280 to 304 million in revenues for 2004.
The company expects that gross margins will increase from 2 to 4 % in the second half of 2004 primarily through efficiencies gained in its flash memory card manufacturing logistics.
Higher revenues and higher margins will most likely push net income in Q3 and Q4 2004 to $0.05/share and above.
The company has guided for revenues ranging from $59 to $61 million for Q1 2004.its seasonally weakest quarter. STEC will release its 1Q earnings report this month.
OUTLOOK....
I expect the price of STEC to continue its upwards movement into 1Q2004 earnings release this month and beyond because for several reasons:
1) Revenues of about $60 million for 1Q 2004 (per guidance) will be about 33% higher than the $40 million posted in 1Q 2003.
2) Net income will likely be slightly positive compared to a loss of $1.6 million last year aided in part by the upswing in DRAM prices.
3) Guidance for 2Q and the rest of 2004 will be terrific because the CEO already said that he expects revenues and margins to start ramping up during 2Q 2004.
4) 2nd half 2004 margings are expexted to increase because of higher DRAM and flash memory card prices and improvements in STEC's flash-card manufacturing logistics as discussed during the last CC.
5) More than half a million short shares that will need to cover. STECs short position has increased substantially lately and is partially responsible for the drop in PPS. Ironically, this will accelerate price appreciation as shorts cover.
STEC designs, manufactures and markets custom and open-standard memory and storage products based on Flash memory and DRAM technologies. It also manufactures connectivity products that connect memory cards and hard drive upgrade kits to personal computers (PCs).
stockcharts.com/gallery?stec
Simpletech Inc. (Nasdaq: STEC) is an undervalued DRAM and flash memory manufacturer. An industry report issued yesterday stating tha DRAM memory prices are escalating probably added fuel to the fire.
www.theinquirer.net/?article=15195
STEC is and undervalued fast-growing profitable company currently trading at about 60% of sales. The industry average is about 3 P/S. STEC has $76.4 Million in cash and cash equivalents... and NO long-term debt. The current market cap is only $180 million. Insiders own over 50% of the 44 million O/S shares.
STEC recently posted a profit on 19% Revenue Growth for 4Q2003 compared to 4Q 2002. Revenue growth in FY 2003 was 36% compared to 2002.
STEC's current guidance is for full-year 2004 revenues to increase by 25 % to 35 % from FY 2003 revenues of $221.8 million.... or about $280 to 304 million in revenues for 2004.
The company expects that gross margins will increase from 2 to 4 % in the second half of 2004 primarily through efficiencies gained in its flash memory card manufacturing logistics.
Higher revenues and higher margins will most likely push net income in Q3 and Q4 2004 to $0.05/share and above.
The company has guided for revenues ranging from $59 to $61 million for Q1 2004.its seasonally weakest quarter. STEC will release its 1Q earnings report this month.
OUTLOOK....
I expect the price of STEC to continue its upwards movement into 1Q2004 earnings release this month and beyond because for several reasons:
1) Revenues of about $60 million for 1Q 2004 (per guidance) will be about 33% higher than the $40 million posted in 1Q 2003.
2) Net income will likely be slightly positive compared to a loss of $1.6 million last year aided in part by the upswing in DRAM prices.
3) Guidance for 2Q and the rest of 2004 will be terrific because the CEO already said that he expects revenues and margins to start ramping up during 2Q 2004.
4) 2nd half 2004 margings are expexted to increase because of higher DRAM and flash memory card prices and improvements in STEC's flash-card manufacturing logistics as discussed during the last CC.
5) More than half a million short shares that will need to cover. STECs short position has increased substantially lately and is partially responsible for the drop in PPS. Ironically, this will accelerate price appreciation as shorts cover.
STEC designs, manufactures and markets custom and open-standard memory and storage products based on Flash memory and DRAM technologies. It also manufactures connectivity products that connect memory cards and hard drive upgrade kits to personal computers (PCs).
