Looking Ahead, GT Advanced Technologies looks incredibly cheap

“Shares of GT Advanced Technologies have absolutely crushed it over the past 14 months, up more than 324%, beating the market by almost 300%,” Jason Hall writes for The Motley Fool. “Now, get this: There is strong indication that the stock may just be undervalued today. Sounds crazy, I know, but based on what management told us just this week, the stock trades at a price to earnings of 8.4.”

“As a comparison, partner Apple, largely the source of GT Advanced’s first step toward massive growth through its partnership to produce Sapphire for an as-yet unnamed product, carries a P/E ratio of around 13,” Hall writes. “The difference? Apple’s P/E of 13 is based on the past 12 months — actual proven results — while the P/E of 8.4 I’m touting for GT Advanced is based on the $1.50 per share in (non-GAAP) earnings that management is telling us the company will reach… in 2016.”

“Obviously there’s a lot of time — and work — before the company actually gets to that point, but any way you slice it, today’s share price looks awfully attractive based on that kind of potential,” Hall writes. “Investors need to remember that the stock price is still below its 2008 IPO price, and the all-time high set in 2011. Before selling just based on strong returns over the past year, it’s important to remember that investing in a company is largely about what’s coming, not what has already happened.”

Read more in the full article here.

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10 Comments

      1. Several other states have had or in process with similar efforts. It will interesting to see what effect, if any, this veto will have on those. Well – interesting is an understatement.

    1. When liberals have successfully established a false meme about an issue, they’ll continue beating on it until they start getting a negative reaction from the paid voters… er, welfare recipients, by which time they will have found something else to twist out of shape for their own purposes. SB 1062 is a case in point.

      1. Yehh! Bloody liberals. Why can’t they realize that the right wing ultra-rich only want what is best for all of us?

        Just look back to the age of the robber barons… how good everything was then. Well, uh, maybe not. Look at some really right-wing countries and how much better they are than those namby-pamby places like Denmark, Holland, Switzerland, etc. Uh, well, maybe don’t do that, either. Umm – just believe me!!! KOCH BROTHERS FOR CO-PRESIDENT!

  1. Years ago the Motley Fool was an interesting investment resource. Now it is full of actual fools. It is ridiculous to even begin to compare Apple’s P/E based upon trailing earning to a speculative P/E based upon leading earnings…leading as in two years from now.

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