Q4 was the first quarter that really reflects the transformation to a service company where margins are higher.

SO has blown away anaysts estimates for the past two quarters and is on track to earn above $2 per share in 2013 on sales in excess of $1.3 billion..

They just increased the dividend by 30 % which is quite a large jump and reflects managementc confidence in the future.

 

With nearly $4 in cash, no debt and increasing its dividend, SO should be accorded a p/e ratio of at least 10 which would place the fair value above $20 per share.

 

Throw in the cash and you have a fair value of about $25 per share...