new microequities report, page-3

Yes, there is certainly more upside in CLV. I have long believed that $0.80+ is achievable, but unlikely in the short-medium term. In fact in one of my posts I put some comments out to this affect.

On FY13 (this year) EPS will come in around $0.039 on my estimates. That 14x earnings and expensive in my books. Even if I am wrong and it comes in at $0.045, which is an enormous variance, but still 12x earnings. Hence, I believe it is now overvalued.

On M&A, I see this as unlikely. With Souls sitting there they will never bid agressively. They also have strategic cross-holdings with farjoy etc. Additionally they will never sell to a bidder - I know their style. They want CLV for their own and will manage conservatively. I also doubt that a bidder could accumulate enough to out vote Souls. Of course, I could be wrong but I cant see if playing out this way.