guess instos are selling out. i know some have a bearish view on the IT sector and small cap sector. Plus some brokers are telling clients to keep clear of small caps until the dust settles
yield now around 8%. The market probably expects a yield of 6.5 to 7% anyway now the bull sentiment is gone. Fair value more like $2.80 to $3 on that basis
so OKN will only outperform if they grow their earnings at around 15 to 20% pa.
that means they have to add $5million a year to the bottom line to be a growth story again
because the margins have shrunk to 20 % they have to add $25million a year to the top line revenue to maintain growth and get back to growth pe pricing
is that possible?
anyone know? I don't. I like the company but I want a growth story, not interested in just collecting divvy checks
OKN Price at posting:
0.0¢ Sentiment: Hold Disclosure: Not Held
