Eaco Corp (QB) (EACO)

[Rawnoc]

EACO -- Just after the quarter ended on June 9, EACO through its bisco industries subsidiary, announced on its blog,

"bisco industries is proud to be newly authorized ABB distributor. ABB is a worldwide leader in power and automation solutions offering everything from circuit breakers to robotics systems. Based in Switzerland, ABB has 140,000 employees around the world working to drive innovation. In fact, ABB was recognized for a third year as a top 100 global innovator by Thomson Reuters. bisco industries' partnership with ABB will focus on ABB's low voltage product offering. The low voltage product offering includes circuit breakers, distribution boards, switches, power supplies, relays, terminal blocks, contactors, and more. bisco industries has brought in an initial stocking package of over 450 products."

http://seekingalpha.com/article/3296585-eaco-corporation-fasten-your-seat-belts-and-prepare-for-liftoff

[SSKILLZ1]

EACO

I’ve been buying a tiny position in EACO over the last month a few shares here and a few share their. Here is what I like.

1) EACO has been growing for years, as revenue has grown from FY 2010 of 91.5 million to 134.7 million in FY 2014. And they have grown revenues every year, and so far 2015 looks more of the same as they continue to grow revenues.

2) EACO earned .23 in q2, which means if you annualized that it would be cheap, but EACO is seasonal and their best quarters are q3 and q4 are yet to come. So I expect really good numbers of say .35-.45 the next two quarters, hence I feel the stock is very cheap at current prices in my opinion.

3) EACO has a healthy balance sheet with a $1.33 in cash.

Conclusion: I like EACO and think it has a chance to post some really great results. The downside is the CEO owns a lot of shares and occasionally sells some shares, so I always think EACO will receive a lower PE because of it. But still a PE of 8-10 gets us to about $9-$11 in my opinion. All is just my opinion, and I could always be wrong though.

[jbaxter]

As the queen of the lonely stock board club, I am glad to see you've found this. PFHO, EACO and UWN are my pride and joys, even if I can't find anyone to share them with. Nice thing though, you can amass a nice position while nobody is watching. Good luck here!

[Modzew]

Thanks MikeDDKing and Rawnoc! Surprised that there is no mod to make these sticky for everyone to see.

[Rawnoc]

Here is a link to somebody else's EACO DD:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112571632&txt2find=eaco

[MikeDDKing]

Here is a link to my EACO DD:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112571632&txt2find=eaco

[MikeDDKing]

I purchased a bunch of shares today.

[Rawnoc]

Cleaning up big time.

[dffhogs]

My first buy was at $6.75 and up from there all the way to maybe $10.00. I don't normally let the public know when I'm trying to buy a stock that rarely trades.

I'm done buying and have even flipped out of a bunch of shares. Let the rest rip.

[Rawnoc]

$0.23 EPS

[jbaxter]

Yes, I tried the same thing, have to call a broker on ameriturd for the initial position. Ridiculous.

[Rawnoc]

Ameriturd and Eturd won't let me pick up some shares. Oh well.

[jbaxter]

Nope. Was hoping to talk to the bid dog but wasn't to be. Still think this is a deeply discounted value play. Hope to see the 10Q for any info that is in that.

[Huckleberry Pieman]

Any luck with your phone call?

[jbaxter]

That's not good to hear. I wonder why they are public and reporting if they are not going to at least talk to shareholders? Why not just buy us out or something??? Thanks for the info, I'll call them tomorrow.

[Huckleberry Pieman]

This company seems to be very shareholder unfriendly. Confirm it with a call to the hq. Not too confident with the person I spoke with.

[jbaxter]

Still looking for clues myself, and can't figure the price. So tempted to triple down.

[Huckleberry Pieman]

Now that the excitement has died down does anyone have a clue as to what happened?

[jbaxter]

Little bump today. Long term, confident, short term, bewildered. I guess now it's just a matter of who will come along that sees things like a few of us value hunters. 10Q I think will add some color I hope.

[jbaxter]

The CEO has sold some before, but only 1000 or so at a time. I don't know if there are limits if the CEO wanted to sell more or not. If I were the CEO, I wouldn't dump wholesale, but then again, everyone needs to make their own decisions as to what makes sense to their financial needs.

I look at whether the company shares are cheap no matter who holds them. I think they are very cheap, unless someone can point out why they are not. Both on book value, sales per share, EPS, and growth rate, a single digit price doesn't seem at all appropriate. I could be wrong, but I would like to know what I'm missing here.

[Huckleberry Pieman]

There has not been a filing of insider selling. There were some pretty big blocks on the way down.

[jbaxter]

Huck, if I weren't catching a plane right now, I'd look into that. I believe they do release the SEC reports sometimes a while after they release earnings. Maybe that will clear things up too. I have never seen a stock with great earnings get cut in half in one day to a P/E of like 4 or 5? What's the mentality of that?

[jbaxter]

I too am completely bewildered by this drop. You can buy out the entire float for about $1/2 a million dollars. But other than that, the growth is incredible and look at the revenue and earnings growth.

Who would dump this at sub $5? I imagined a $10 jump, not drop when those earnings came out. Good luck with your purchases. I'm truly baffled, and hold a bunch myself.

[Huckleberry Pieman]

Wondering why eaco has not submitted filing a filing with the SEC?

[protagonist12]

More relentless selling on 120% profit growth? Uhmm ok. Buying opp here! AND looking great for long term. Hope it doesn't gap up too much Monday morning as I for one will be looking to take a starter.

[jbaxter]

Very true. Seems everyone is so short sighted and sell on any type of news. I am still baffled that so much stock would just be dumped at any price. Any analysis of the company would say that this is grossly undervalued, but the market is the market. I for one am not giving away my shares.

[investorone]

I know what you mean but there's the "I think" part especially on these OTC/BB/Pink Sheet stocks as I have learned that logic does not 100% equate with the stock market.

[jbaxter]

Funny thing about stocks, when there seems to be a huge buying opportunity, no body does. Not worried here, the growth and earnings are too big for many to ignore I think.

[investorone]

Maybe there will be a bounce up as it shows a premarket trade of 500 shares at 8.25.

[jbaxter]

Why would anyone sell a stock at 7 when it earned more than $1 eps, and is continuing to grow? I understand sell on the news, but that move yesterday was just bananas. Half the float changed hands too. Someone had a panic attack, why?

[investorone]

Beats me on this one, jbaxter.

[jbaxter]

HOLY CRAP! Someone got a great deal yesterday, and those earnings are eye popping! Better than I even expected!

[investorone]

Wow-looks like great earnings just got released

44 cents (32 continuing op) vs. 6 cents year over year for the quarter. What do you all think?

[investorone]

Any news per the price?
Thanks.

[NathanH]

Hello

[jbaxter]

Wait for it... wait for it... then boom will go the dynamite :)

[Rawnoc]

My first buy was at $6.75 and up from there all the way to maybe $10.00. I don't normally let the public know when I'm trying to buy a stock that rarely trades.

I'm done buying and have even flipped out of a bunch of shares. Let the rest rip.

[Rawnoc]

Joined many dollars ago.

[investorone]

Why look who has joined the party and I truly hope this is a good sign.

[investorone]

Where do I sign up :)

[Rawnoc]

Bring it. ;)

[jbaxter]

I think earnings will be a big catalyst. $20 anyone?

[investorone]

What's really good is that this is before an earnings release which could help the stock go even higher.

[jbaxter]

EACO = What bear market?? LOL! This is great!

[investorone]

Ditto.

[jbaxter]

Great! Good luck to us both. With about 80k in the float, we're in an ultra unique club.

[investorone]

Sounds good to me and BTW I joined you earlier-especially after that seeking alpha piece-as this gem has a lot of pluses going for it and I think is the best non-blue chip stock out there at this juncture.

[jbaxter]

It will be this quarter. Last Q was May 31, 2014. In that Q:

n March 2014, the Company entered into an agreement to sell the Sylmar Properties. As such, the associated land, buildings and improvements and related liabilities were reclassified as assets held for sale and liabilities held for sale, respectively, on the accompanying consolidated balance sheets as of May 31, 2014 and August 31, 2013. In June 2014, the Company completed the sale of the Sylmar Properties for $9,125,000 in cash and paid the related mortgage off in full.

Assets available for sale: $7,483,000 on the balance sheet. I would assume the difference would be the gain on the asset. The liabilities which I assume was the mortgage and paid off, thus the difference from that and cash received less closing costs if not included in that $9,125,000. would be added to the cash balance. If you don't agree, let me know. I didn't buy this stock for a one quarter non-recurring gain, I just like the value here, and that is a nice kicker. I was surprised to see someone also follow it on SA, and that person seems to have come to the same conclusion (and no, I didn't write it).

[investorone]

Hi jbaxter-was rereading the posts and have a question for you. In your post #10 you mentioned about a real estate sale which would make for a nice gain in the upcoming quarter. Didn't that section you referred to mean the sale was included in the last quarter or is it in the one coming up? How does that work in the balance sheet and earnings report figures for such a thing? Thanks again.

[investorone]

That's an interesting analogy and yes, a good earnings report would be great to have!