All Numbers In Thousands except eps and percentages
**AFOP** 2010 2011 2012 2013
**Revenue** $45,406 $42,020 $46,611 $76,070
**Cogs** $29,872 $28,578 $30,617 $46,952
**Gross Profit** $15,534 $13,442 $15,994 $29,118
**Gross Margin** 34% 32% 34% 38%
**Net Income** $6,012 $4,431 $9,641 $18,808
**Profit Margin** 13% 11% 21% 25%
**EPS** $.69 $.49 $.54 $1.02
**Shares** 8,580 8,867 17,861 18,481
**Cash** $45,369 $39,588 $33,275 $46,679
**Debt** $104 $97 $0 $0
**Cash Flow** $1,669 $4,110 $7,893 $11,841
Andy
6 Likes
Thanks Andy,
What a great 2013 for AFOP! Is the first quarter out yet and if so, have they continued on their winning ways? I’m thinking of recommending this to my sister who needs a small bump in performance. Any idea what a good buy in price is? I bought in at $12 but don’t have any idea of fair value.
Thanks,
Mykie
Mykie,
I am not into this one. I just took a look at it because alot of people are talking about it. I wanted to see what the numbers looked like. These are some of my concerns.
They did great in 2013 on the Revenue but their gross margins are still in the 30% range. In 2012, if I remember correctly my notes are at home, they received a one time boost to their net income due to tax related issues. They also cut R$D and SG&A, its great that they were able to cut SG&A but I dont like to see them cutting R&D because the business they are in is a commodity business. Alot of business’s can and do make Fiber Optical Terminal’s (FOT’s) and Small Form Pluggables (SFP’s). They also cut R&D and SG&A in 2013, like I said its great that they are cutting SG&A. I didn’t look to far into their business though and you all have gotten some great returns so congratulations on that. I am worried though that their profit margins will slip back down in the low double digits so I am staying out of this one, but if they can keep growing Revenue like they have it should be a great investment.
I think a better person to ask on this one would be Saul though.
Andy
1 Like
Thanks,
I nibbled a bit, saw it rising and decided to check into it more but I am not an analyst so checking into it more means, for me, to ask an expert and then make a decision.
Mykie
PS I don’t know who it was but they posted a blurb on IPGP and it has a wonderful CAPS rating. As usual, it has risen recently so I’d like to find who recommended it here on Saul’s board, and get some more info.
Mykie,
I am not an expert or an analyst either. These are just my opinions and I have been wrong before.
I posted on IPGP some numbers. I like the company and own about 5% of it. They make lasers for industrial use, (welding), they make lasers for micro chips,(flat panel TV’s, solar panels) and are moving into the 3d space also for laser sintering. They make the cheapest lasers and the most efficient lasers. They have been driving down the cost of lasers so that their competition can’t keep up. For me they are a long term investment with steady growth. They just came off a time of acquisitions and upgrading their systems. Hopefully we will see a growth in revenue going forward.
Mykie, I have been going through my portfolio and looking at the companies I am invested in. The numbers that I have been putting out are numbers that I have tracked. A person pointed out to me that profit margin’s might not be the best to track because of how much taxes, depreciation and amortization can be messed with. After thinking this through I have to agree. I have seen where companies are getting boosts on their profit margins from taxes. So I need to go back and look at the operation margins on all my companies. This should allow me to see how efficient they are. I post on these boards to give and get ideas from other people but you must look into them also because you may have a different view than I do.
I hope this helps
Andy
This should allow me to see how efficient they are. I post on these boards to give and get ideas from other people but you must look into them also because you may have a different view than I do.
Thanks Andy,
I do have to get into the numbers and I intend to do just that once I consolidate my stocks and finish a conversion from Morgan Stanley led portfolios to MF let portfolios with me at the helm.
All postings by all Fools are helpful to me during this transition period and I appreciate them all.
Mykie
I do have to get into the numbers and I intend to do just that once I consolidate my stocks and finish a conversion from Morgan Stanley led portfolios to MF let portfolios with me at the helm.
Thanks Mykie I know you will do well.
Andy