SwingTrade Member Forum

[MikeDDKing]

IPMN is one of my favorites that I think has great odds to be a multi-bagger and possibly a 10+ bagger. They have two main lines of business including biodiesel production and tar sands oil recovery. Here are some reasons I like IPMN:

1. Trailing EPS/PE - IPMN had diluted EPS of $0.214 in the fiscal year ending July 31, 2011 so they are trading at a trailing PE of roughly 3.

2. Forward EPS/PE - I estimate that IPMN made $0.10 in fiscal Q1'12 (ending Oct 2011). If you annualize my expected EPS for the this quarter they are trading at a PE of roughly 1.7. I expect fiscal 2012 earnings to be higher than this run rate but I haven't yet done an estimate.

3. Large Biodiesel Growth - They are expanding their biodiesel facility from 30M gallons of annual capacity to approximately 40M. The additional capacity is planned to come online near the end of January. Also, they are planning on adding one to two additional biodiesel facilities with the first one coming online in February 2012. The first facility will have capacity of 30M gallons which means that their biodiesel revenue rate could increase by ~133% by February assuming constant diesel prices. They are planning on adding one facility in the southeast and one in the southwest. They plan to add the second facility near the end of fiscal 2012 bringing biodiesel revenue growth to 233% assuming a 30M gallon facility and constant diesel prices.

4. Tar Sands Oil Recovery Business - Currently the vast majority of their revenue comes from biodiesel. However they are just bringing their tar sands oil recovery business online. Per the last CC their first commercial operation was to come online in November. This business has the potential to be as large or larger than the biodiesel business. In the last CC they stated that their initial oil sands operation can generate $10M in net income per year once it is fully operational which translates to approximately $0.25/share.

The IPMN board is located here:
http://investorshub.advfn.com/boards/board.aspx?board_id=4950