RE:I did almost choke on my coffee!Maybe I should clear a few things up.
People often call me a chronic pumper.
I think they should reevaluate that.
I'm not a pumper, I'm someone who has a time horizon further than a few weeks or months out.
I think Xebec will go to the twenties or thirties within 2 of 3 years.
Ultimately the upside is beyond measure.
It's good when a company experiences double-digit revenue growth while maintaining decent margins.
It's better when a company experiences double-digit top-line growth while simultaneously operatingmargins are improving fast.
Earnings growth becomes exponential.
Xebec has no problems with revenue growth.
The operating margins are going nowhere but up from here.
The effect on the bottom line will be drastic.
The news will get better and better.
Combine 50%+ revenue growth with margins moving from -3 to -4% to 20%- 30% and what do you think happens?
Bottom-line growth becomes exponential.
That's what's going to happen.
If you think my $20 target is laughable, you might want to keep in mind that TD raised their one-year target to $17.50 only 7 months ago today.
Analysts base their targets by looking at data in the rearview mirror.
Maybe you should consider that Xebec's problems are legacy issues.
They are fading into the past.
You ridicule me for pointing out that Amazon went from $94 to $8, without considering the context of my observation. Then it went from $8 to $3,700.
People hated it at $8.
That was merely an example of what the market can do, and sometimes does.
I chose this as an example because it's perhaps the most familiar name.
There are countless others.
My point should have been very obvious to everyone.
I have no idea where Xebec will trade next Friday.
I only know for sure that the next $10 move in this stock won't be down.