Network Engines, Inc. (NASDAQ:NEI)
CAPS Rating:
The Company develops and manufactures server appliance solutions that deliver software applications on server appliances.
The World's Greatest Investing Community
The Company develops and manufactures server appliance solutions that deliver software applications on server appliances.
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ratings and Key Statistics provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions
RSS Headlines
Fool UK
Recs
Network Engines is the perfect set it and forget it limit buy. Network Engines dumped one hell of an earnings warning on investors last month due to customers holding off orders and general delays. Despite this growth remains consistent at 10% per year and they remain marginally profitable. NENG has 30 cents in net cash per share and when we back that out we're looking at a company trading roughly $1 over cash and around 11 times my 2011 estimates. I'm going to take that a step further and try to nab Network Engines at 93 cents per share, or just 63 cents over cash. I fully expect one more quarter of sub-par earnings and feel they will earn only 2-4 cents in 2010 while rebounding to 9-10 cents in 2011. If I get my limit hit, NENG will be trading at roughly 7 times forward earnings with a 10% growth rate for a PEG of just 0.7. These are very reasonable growth targets and I feel NENG is a likely buyout candidate from a larger suitor in the next 3 years. Fair valuation here is closer to $2.40 a share.
UltraLong