NSOM challenge picks
I have to say this was one of my ugliest. There are 3 stocks here I want to own in the contest and 3 I am lukewarm about in this timeframe
First the good
CXPO - Really earned somewhere in the ballpark of .85 last quarter if you ignore the meaningless hedging mark to market entries. Better yet though those earnings were based on NG at just over 8. Right now NG is sitting over 11. If they average $10 on NG with current oil prices you would see EPS exclusive of hedges of 1.50+ next quarter. That does not include production gains, or production from their new property scheduled to close this Q. Their hedges are unwinding and with presumed forward PE of a bit over 2 it looks dirt cheap.
JCTCF - Company sells wood products and lawn/garden items. They have really weathered the consumer storm and earned .21 last Q a 50% yoy improvement. Their next 2 quarters are seasonally stronger and they are predicting "significantly better". Should earn .40 next quarter and over a dollar for the year. It appears to be a steal at 7.30 just slightly over book value.
AYSI - What can you say? A forward PE of 7 for a company growing revenues 140% YOY with a plant expansion in the works. Seems like it screams double digits at some point here.
Now it gets fuzzy
GVSS - earned .01 last quarter and shares are down to .67 but they got a 600k cash infusion to spend on marketing from Samsung this quarter. That should pay significant dividends in terms of sales leverage and I believe any they don't spend flows into EPS. This is also a slightly stronger Q. Could easily earn .02 plus which gives it a potential 50% upside.
TTIL - OSS provider for telcoms. Excellent balance sheet with lots of cash. They earned .05 last quarter primarily due to exchange rate issues with the dollar. Revenues should continue to grow as book to bill was over 1 this quarter. If they can get the exchange rate issue under control they could beat that by a significant margin.
TCCO - Not as enamoured of this as I used to be but they are tracking for a 1.8 million or so quarter and probably .20 in EPS this quarter. It should have some upside from 6.40 and any new contract announcements could really send it up.
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