I wanted to do a brief portfolio update on companies that have announced Q1 results in my SRS portfolio but ended up getting stuck at Nera Tel where it "deserves a post" by itself.
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NeraTel Q1 results
This is the first set of results under the new owners and i "don't like it". The revenue and profit has declined, operating expenses has increased even though margins has improved. The "write back" of completed project costs also masked the improvement in margins. I will probably give it one more quarter to "prove" that this decline is temporary as Q2 and Q4 are traditionally slower months.
Based on current results, the LTM EPS is around 5.18 cents and that translate into a LTM PER of around 13x. Not exactly "good valuation" already. I would say it is trading at fair value currently.
If i assume the full year profit drops ...
