Comments on Steven Rubis' articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/steven-rubis/articles http://seekingalpha.com/article/43642/comments?source=feed#comment-209254 209254 Sat, 19 Jul 2008 07:30:41 -0400 http://seekingalpha.com/article/43642/comments?source=feed#comment-96035 96035 Sat, 15 Sep 2007 07:39:40 -0400 http://seekingalpha.com/article/43642/comments?source=feed#comment-93134 93134 Wed, 08 Aug 2007 07:13:38 -0400 http://seekingalpha.com/article/41438/comments?source=feed#comment-91464 91464 Wed, 18 Jul 2007 10:26:38 -0400 Really, the only numbers that really count with private equity buyers are EV/EBITDA and EV/Free Cash Flow. Not that the stock doesn't look cheap on that basis.
The best comparables are Amkor, ASE, STTS and SPIL. There's also ASTT, but that's a distressed situation right now.]]> http://seekingalpha.com/article/40460/comments?source=feed#comment-91195 91195 Sat, 14 Jul 2007 23:26:17 -0400
In other words, operating leverage is disappearing. In order to have earnings grow faster than sales, DGX has to expand its margins. And if its margins expand, then the PE will follow suit.

Appendix: In 2006, sales grew 15%, but EPS 11%
In 2005, sales grew 8%, and EPS 14%
In 2004, sales grew 7%, and EPS 16%

Notice that in 06, the trend cracked -- if you think DGX can improve its margins, then I agree, the stock has some upside.]]>