33 replies to this topic

[gamma]

 here you go http://wp.me/p3RKee-6d

 

Gamma, POY is currently trading at 21x FY14e EPS, a little rich but mgmt have huge aspirations for growth and the mkt for their products has the potential to explode. A lot of their products in the commercial space are in the testing phase so revs are lumpy. Currently the defence business is hitting the ball out the park (Business very sticky). At these levels you are buying into mgmt and the LTM/M2M technology ramp. PSG are the big buyers of POY in the market and are contlnually increasing they position. 

 

Thanks TLG. yeah, I'm taking a look.

[TheLittleGuy]

Where is the link?

 here you go http://wp.me/p3RKee-6d

 

Gamma, POY is currently trading at 21x FY14e EPS, a little rich but mgmt have huge aspirations for growth and the mkt for their products has the potential to explode. A lot of their products in the commercial space are in the testing phase so revs are lumpy. Currently the defence business is hitting the ball out the park (Business very sticky). At these levels you are buying into mgmt and the LTM/M2M technology ramp. PSG are the big buyers of POY in the market and are contlnually increasing they position. 

[cdb999]

Where is the link?

[Sugafoot]

Thanks for the heads up. Thinking about a punt. What's your current view on the long term prospects? and Management?

but it looks to have run way too far, even factoring in future earnings..

Gamma, TLG wrote an excellent piece on poynting's future prospects. Check out his website

[gamma]

Thanks for the heads up. Thinking about a punt. What's your current view on the long term prospects? and Management?

 

but it looks to have run way too far, even factoring in future earnings..

[gamma]

POY has pulled back 30% since 10 April. Haven't heard any major negative news flow. Over the last 12mths these pull backs have provided nice entry points.   

 

Thanks for the heads up. Thinking about a punt. What's your current view on the long term prospects? and Management?

[TheLittleGuy]

I have started accumulating on a small scale. Reading the commentary from The Little Guy, it's exciting.

POY has pulled back 30% since 10 April. Haven't heard any major negative news flow. Over the last 12mths these pull backs have provided nice entry points.   

[Sugafoot]

What are your thoughts on this one guys?
Pulled back quite a bit the past few weeks

I have started accumulating on a small scale. Reading the commentary from The Little Guy, it's exciting.

[Queen B]

What are your thoughts on this one guys?

Pulled back quite a bit the past few weeks

[Goliath]

That is the million buck question...  Organic growth looks like it is easily capable to being >20%, if they can executed on their acquisition strategy and make a couple more like Aucom then we could see some go earnings upside. This latest run in the stock has taken the multiple closer to 13x, essentially pricing the Aucom acquisition. Not a stretch for a company with >20% growth potential, but POY is still a small cap and the market is quite nervous. 

 

The stock is tightly held so trading is pretty volatile.... I am tempted to take a small position now and wait for a pull back to get more in. 

Like all shares that is currently in a hype it wil eventually drop a bit I'd say (MIX is a good example..) but that just my 2c..

[TheLittleGuy]

Nice article, LG.

Your articles are well written, informative and detailed.

Q: does one buy now or wait for a pull-back? Currently trading at 300c

That is the million buck question...  Organic growth looks like it is easily capable to being >20%, if they can executed on their acquisition strategy and make a couple more like Aucom then we could see some go earnings upside. This latest run in the stock has taken the multiple closer to 13x, essentially pricing the Aucom acquisition. Not a stretch for a company with >20% growth potential, but POY is still a small cap and the market is quite nervous. 

 

The stock is tightly held so trading is pretty volatile.... I am tempted to take a small position now and wait for a pull back to get more in. 

[Sugafoot]

What kind of pull-back, if any, can we expect?

[Sugafoot]

Nice article, LG.

Your articles are well written, informative and detailed.

Q: does one buy now or wait for a pull-back? Currently trading at 300c

[TheLittleGuy]

POY has been on a tear lately, the stock is up 25% in the last week alone.  POY is in the middle of the Data bandwidth explosion & 4G/LTE technology transition and mgmt have stated their intention to increase Revs 10 fold to R1bln by 2017 (via acquisitions and organic growth). Revenue & net income growth are forecasted to be >20% going forward 

 

At current levels based on my EPS estimates the stock looks fully priced at 12x forward EPS. But the question remains, Is 12x EPS too little for a company with grand ambitions about to experience secular growth? We have  seen companies with acquisitive strategies trade at significantly higher multiples recently (EOH, TOR, come to mind). Could POY trade at 20x forward EPS? Momentum is definitely on its side. 

 

Here is my take on the stock.  http://wp.me/p3RKee-6d