Tuesday, January 22, 2013
Another Stratasys Warning Letter to a Friend
hope you're having a happy new year.
I don't find glaring discrepancies every day , maybe 1 big problem every quarter.
I have read you for years and years and I know how you can relate to me, (that when you find something nobody cares and the market just keeps going higher with the Kool Aid Drinking crowds).
In any event, i found a HUGE PROBLEM and no one is paying attention to me which means i'll probably be right.
I actually Know I will be Right but that doesn't put any money in my pocket, but that's fine too.
SSYS is the Stock
On December 3rd SSYS merged with OBJET.
the new company as of that date has 41 million shares outstanding.
Piper valued the merger $1billion (objet) + $1.2 billion (SSYS)= $2.4 billion deal.
Piper among other brokerages comes out with a 2014 Price TGT of $83 per share based on $2.31 EPS 2014. (PE multiple of 35) their words not mine.
that is over $100 million in net income projection for 2014.
the two companies combined for an estimated $277 million in gross sales for 2012.
i won't get too much more into detail but to find more information and the response letter that the Wall Street Journal sent to me you can find that here and even more here
Here is what the BANKS are saying....it's all wrong because none of the brokerages adjusted the shares outstanding and/or EPS based on more shares
have a great day
ps. i heard but haven't verified yet that Piper upgraded Price target this morning to $94.
My first blog post on this ticker