RE: RE: RE: Record sales and earnings in Q2Based on the 2010 ratio of first half to total annual net earnings, GLN should earn about $2 per share in 2011 compared with $1.10 ( post-split ) in 2010.
According to FSR, peer trading valuation multiples in this niche is 15 times, which means that GLN should hit about $30 per share, as its net earnings in the much stronger second half are reported.
Looking forward, FSR is also very positive on several other factors that should drive GLN 's future sales success.
..................Once again we were very pleased with Glentel’s quarterly results which beat consensus estimates. Consumer demand for smartphones remained solid in the second quarter in Canada, with same-store activations increasing 15% in Canada (up from 12% in Q1 2011).
.................................Smartphones continue to offer more functionality, fueling consumer demand, and creating a significant growth area for the company in both sales and profits. Many smartphone manufacturers are introducing tablets as a complement to their product line. Glentel believes that these tablets, such as the Samsung Galaxy Tab, will increase demand for wireless devices, bringing new growth to the company.
............................................Glentel continues to operate in a significant sweet spot in the retail market as wireless technology continues to gain traction in all aspects of North American daily life. The Canadian and U.S. wireless industry growth will be driven by the usage of data services such as email, text, picture, video and instant messaging, social networking, web browsing, application usage, gaming, and videostreaming.
................To accommodate this usage, Canadian and U.S. carriers continue to invest considerable sums of money into their networks. For example, over the past, Verizon has made a substantial investment in 4G/LTE technology and rolled out the 4G/LTE network to many larger cities in the United States; this has driven consumer demand for 4G/LTE supported handsets. We see this as an opportunity for existing and potential customers to upgrade to the newer technology. This bodes well for Glentel in the near term.
In 2010, second half net earnings were 2.95 times higher than first half net earnings.
First half net earnings in 2011 were
.53 ( 0.28 in 2010 )and the above factors indicate that second half numbers in 2011 might rank higher in ratio than in 2010.