Plantronics (PLT) is a great company. Its experience goes back to the Apollo space missions and the current headsets are trend setting and always state of the art in technical sense. As if that would not be enough, even the service and support is commendable. Where other companies give you just a short reply, Plantronics offers a solution.
Nevertheless, the performance since the dotcom crises in 2000 looks more like a longterm sawtooth pattern than as a promising growth stock. But with a swing from the depth of $7,84 (€ 5,71) in March 2009 up to the top at $38,87 in May 2011 – a plus of more than 360% – and a dividend yield below 1 per cent, you hardly may call Plantroics a true value stock.
So, what is Plantronics? One could consider Plantronics as a high-tech stock, with low financial growth, a healthy balance sheet, strong equity structure and great opportunities.
Currently the chart shows a turning formation up to the North. If the stock price will break trough the $40 (€ 29,13) mark we could assume to see further gains, up to $50, what is the upper limit of the longterm sawtooth pattern.
To break that longterm sawtooth pattern, Plantronics has to improve the financial fundamentals, what seems currently unlikely but not impossible.
Disclosure: five-alive has no positions in Plantronics, and no plans to initiate any positions within the next 72 hours.
Article by five-alive, first published at Seeking Alpha