Share price estimate
From the July 2010 investor presentation I threw together a share price estimate.
From their backlog it listed 26.2 million dollars for 3.52 mm cubic meters of concrete. That works out to $7.4/cu.m which is what I use in my estimates.
For their concrete sales business, the max capacity is 1 million cu.m/plant, 5 plants so 5 million cu m of concrete. That works out to 37.2 million revenue, 10% margins is 3.7 mm net income.
For their manufacturing section, I calculated this different ways. They have 16 portable locations, with a capacity of 2.5 million cu.m, but they list a max annual capacity of 6 million cu.m. I want to look into this further.
1. If you take the 2.5 million cu.m that is 18.6 million in rev. They list 40-60% margins for this business segment but I'll be conservative. At 40% margins that is 7.44 million net income.
2. At max annual capacity of 6 million that is 44.6 million revenue or 17.86 million net income.
3. They also list that the average plant brings in 1.7 million revenue. So 1.7*16 = 27.2. 40% margins is 10.88 million.
So from manufacturing it could be 7.44, 17.86, or 10.88 million net income.
Finally there is their tech services segment. Because this is based off commission it can vary, but it was 8% of total revenue for 9mo of 2010. I will assume this continues. I did I calculation for this assuming 3 different possible revenues. 37.2+18.6, 37.2+44.6, and 37.2+27.2. Respectively, the tech services segment will produce revenues of 4.46,6.54, or 5.15 million. This is listed at an 80-90% margin segement. Taking 80% thats 3.57, 5.23, 4.12 net income respectively.
Potential total income is either
3.7 + 7.44 + 3.57, or 3.7 + 17.86 + 5.23, or 3.7+10.88+4.12
That's either a 14.71 million, 26.79 million or 18.7 million bottom line depending on the numbers you use.
the company lists fully diluted o/s as around 18 million. That is an eps of .81/share, 1.48/share, or 1.04/share. This could easily be between an 8 and 10 dollar stock, if not more.
