Faisal Laljee notes what we observed yesterday on Ceradyne (CRDN): little movement on very positive news. He believes that product diversification or an analyst upgrade will get the stock moving. We disagree, as a look at the comparables still suggests CRDN is trading at an appropriate level. In fact, yesterday’s multiple looked to have more room for downside than upside.
Speaking of its comparables, the McGill Investment Club talks in detail about Armor Holdings (AH).
In fact AH P/E is around 16 whereas the industry average is approximately 23. AH
is has been considerably growing in the past years, having a average 5
year growth in sale of 63%. Yes, 16 P/E and 63% average growth rate.
Well, that was then. What investors see now is a company producing as much vehicle armor as the military wants to order right now, and although the demand should stay strong we said before that strength and growth are two separate monsters.Like this article? Why not try out: