13. Retail fund manager Seymour Simms is considering the purchase of shares in upstart retailer Hot Topic Stores (HTS). The current book value of HTS is $20 per share, and its market price is $35. Simms expects long-term ROE to be 18 percent, long-term growth to be 10 percent, and cost of equity to be 14 percent. What conclusion would you expect Simms to arrive at if he uses a single-stage residual income model to value these shares?