AFOP reports; growth is slowing

Investment Analysis Clubs Saul’s Investing Discussions
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http://finance.yahoo.com/news/afop-reports-27-over-revenue-2…

  • 35 cents adj EPS, 27% y/y growth

  • revenue flat from last quarter due to lower than expected orders from 1 key customer

  • guiding flat revenue for next quarter too

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While grow may be slowing does the stock deserve to trade at a 12.2 P/E? And considering AH trading the P/E is 11.1.

My purchase in 1Q2014 assumed a 11.4 PE (using 4Q2013 results annualized).

Has the upgrade cycle broken down earlier than anticipated or is this simply a time to explore adding exposure. While INFN doesn’t provide a great deal of guidance on future client orders however they continue to grow revs and the eps each quarter.

What are other people’s thoughts?

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WOW

Taking a hit:

AFOP {ER}
SYNA {Down 20 points off recent hi}
UBNT {Down 30% off recent highs}
HZNP {Dropped by big 2 big PBM’s today}
SZYM {back to single digits}

Good news/ER coming for:

SYNA 7.31
UBNT 8.7
SZYM 7.30
Z thru the roof - week of 8.4
JCOM 8.5
SKX kicking it
PSIX 8.7

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Yes, “WOW” indeed on the lineup of losers. One getting in lately could have one heck-uv-a red number in the returns column. (trust me, I know!)

Now are the companies dead (eg HZNP) or stalled (eg SZYM, AFOP) or taking a breather (eg SYNA, UBNT)?

How do these short term moves look on those long term graphs, Saul?

Make every effort to know your companies and keep up with their earnings, then place your “bets”:
HZNP : Fold
SZYM, AFOP : Call
SYNA, UBNT : Raise

KLVanLiew

5 Likes
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revenue flat from last quarter due to lower than expected orders from 1 key customer

* guiding flat revenue for next quarter too

So, other than flatness sequentially and in the guidance, which isn’t the end all, anybody buying more at these prices or did I miss something?
Mykie

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I just added another 1%, doubling my position (orig. purchase @$12.14 in Feb '14). The valuation is just too compelling at these levels.

Vic

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So, other than flatness sequentially and in the guidance, which isn’t the end all, anybody buying more at these prices or did I miss something?
Mykie

Mykie,

I am out!

R