It's great to see Layne profiting already. His stock is CRDN and he did a good job on the numbers. And caught a business before it landed a big contract. Gotta love it when something like that happens out of the blue. But then again, the fact that the stock had MACD, STOCH and 10 - day MA all green well over a week before the public announcement of the contract is an indication to me that the big guys were smelling something good cooking.
Speaking of cooking, the Phil Town Steakhouse name he mentions below is just coincidental! First time I rode into Sturgis and saw that big "Phil Town" sign I laughed! But I do hear it's pretty good.
Now go play.
Layne's Homework:
Hi Phil Town,
I just got through my wedding this weekend and we are going to take a road trip out to the Black Hills, Sturgis and Badlands for a week or so. I noticed online there was a Phil Town Steakhouse in Sturgis and assumed this was your restaurant... If so, is it open?
The post I read was a year old. Any menu favorites? I am definitely a meat and potatoes man… Can't wait to go check it out!
I will finish my email to you about AERTA on the road. I have done lots of homework, but have had no time to write due to wedding and family stuff going on. They did change their ticker symbol to AERT on July 3rd. The more I read about this company, the more I like them, the management and their vision of growth opportunities. I hope to give a balanced perspective.
By the way, I am up $10/share on CRDN, Ceradyne Inc. I talked about this company at the book signing. They just landed a $611.7 Million Army contract over the next five years. This is almost double their annual sales last year at $368 million. Cool Company, really impressive CEO! Here is my quick Rule #1 analysis at the time I bought on 06/01/06.
- PE: 18.56 - EPS: 2.52 - EPS Growth rate: 17.5% (analyst projection) - Future PE: 35 (2x EPS Growth). I used 23 as my number; this was closer to what it had been trading at historically.
EPS doubles approx 2.5 times/10 yrs.
2.52 x 2 = 5.04 x 2 = 10.08 x 1.5 = 15.12.
15.12 x 35 PE = 529.2 vs. 15.12 x 23 PE = 347.76
529.2/4 = 132.30 Sticker vs. 347.76/4 = 86.94 Sticker
132.3/2 = 66.15 MOS vs. 86.94/2 = 43.47 MOS
Bought 333 shares @ 43.32
Today's close: 53.64
$3436.56 Gain 24% increase in value since June 1st…
Your system rocks! I nearly maimed my cat this morning with excitement when I turned on the computer and watched the chart where it gapped up on the news…
I would have never been able to do this without RULE #1!
Layne
