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Ceragon Networks Ltd. |
Thanks for the feedback. Your comments make perfect sense. I did
consider the unexpected items when I cut the calculated earnings
growth rate by half, from 100% to 50%, in my final analysis (after the
theoretical to collections). The 100% earnings growth may sound
outlandish, but one should remember that the company grows earnings
more than 100% last year. I think most critical thing to remember is
that this company still has a quite low profit margin, not because it
has a stagnant low profit margin like many other companies, but
because it has just recently turned profitable. As showing in my
analysis, a present low (but improving) profit margin can be the most
important factor in forecasting a high earnings growth rate. I think
this stock is the greatest bargain on the market at the present time.