Just bought ENG at $1.30
Posted by: timhyma
In reply to: None Date:9/2/2004 7:28:52 AM
Post #of 11275
Looking at ENG this morning.
ENGlobal Corporation is a provider of engineering services and
systems principally to the petroleum refining, petrochemical,
pipeline, production and process industries throughout the United
States and internationally. The services provided by the Company span
the life cycle of a project, and include feasibility studies, design,
procurement and construction management. ENGlobal also supplies
automation, control and uninterruptible electrical power systems to
its clients worldwide. The Company's business consists of two
segments, engineering and systems. The engineering segment offers
engineering consulting services to clients for the development,
management and turnkey execution of engineering projects and
inspection services. The systems segment designs, assembles,
programs, installs, integrates and services control and
instrumentation systems for specific applications in the energy and
processing related industries.
For the six months ended 6/04, revenues increased 25% to $65.3M. Net
income from continuing operations and applicable to Common fell 8% to
$892 thousand. Results reflect the continuation of a large EPC
project, offset by higher S/G/A expenses.
Noticed the director have options to exercise at $1.81 starting Jun
05. this is about 40% higher than current price.
Going through the 10-Q, noticed about 1mil share dilution, but
reading further down, this was due to conversion of preffered shares
to common. Also, the company cancel 50% of the preffered when this
happened. I like that.
A couple concerns:
Expenses are outwighing revenue growth.
LT Debt has grown from 7mil to 9 mil (although short term is down
3mil)
Stock equity is down 2mil (due to accounts receivable)
Cash is down a bit, they may have to dilute.
possible plus- look like they rolled all their debt into one source.
On July 27, 2004, the Company entered into a new Credit Facility
(the "Comerica Credit Facility") with Comerica Bank ("Comerica"). The
loan agreement positions Comerica as senior to all other debt. The
line of credit is limited to $22,000,000, subject to loan covenant
restrictions. The Comerica Credit Facility is collateralized by
substantially all the assets of the Company. The initial funding on
the line of credit totaled $8,612,000. The Comerica Credit Facility
matures July 27, 2007. At the election of the Company, the interest
rate will be the lesser of prime or a three tiered Eurodollar rate,
plus 150, 175, or 200 basis points, based on the ratio of total
funded debt to EBITDA for the trailing 12 months of less than 2.00,
between 2.00 and 2.50, and greater than 2.50, respectively. The
commitment fee on the unused line of credit is 0.250%. The remaining
borrowings available under the line of credit as of July 28, 2004
were approximately $7,500,000.
The Fleet Credit Facility line of credit was paid off on July 28,
2004 as part of the initial funding from Comerica. The Company was in
compliance with all covenants under the Fleet Credit Facility as of
the last reporting period on June 30, 2004.
The Comerica Credit Facility contains covenants requiring the
Company, as of the end of each calendar month then ended, to maintain
certain ratios, including total funded debt to EBITDA; total funded
debt to total liabilities, plus net worth; and total funded debt to
accounts/unbilled receivables. The Company is also required, as of
the end of the most recent quarters then ended, to maintain minimum
levels of net worth, plus the Company must comply with an annual
limitation on capital expenditures. The Company expects to realize
savings in interest charges on the revolving line-of-credit over the
term of the Comerica Credit Facility. The Company also gained
additional availability under the Comerica Credit Facility which
allowed it to retire the Equus II term loan and to realize additional
interest savings. The additional availability will also be used to
support cash requirements of the Company's acquisition strategy.
This could be a wild card pushing the pps up or down:
During 2003, the Company, its subsidiaries, and more than 40 other
parties were named defendants in several petitions for damages filed
in various district courts in Louisiana (East Baton Rouge, Calcasieu,
Iberville, Ascension, and Orleans Parishes) on behalf of former
employees of Barnard and Burk, Inc. The plaintiffs, who allege
exposure to asbestos during the course of their employment, were
employees of Barnard and Burk, Inc. during a period covering the late
1950's through the early 1980's at facilities located within the
State of Louisiana. In 1994, AMEC Engineering, Inc. assigned the
trade name "Barnard and Burk" to RPM Engineering, Inc. along with
selected assets. No liabilities were acquired by RPM. The Company's
wholly-owned subsidiary, ENGlobal Engineering, Inc., formerly known
as Petrocon Engineering, Inc., acquired RPM (along with the "Barnard
and Burk" trade name) in 1996 pursuant to a stock purchase agreement.
Because Petrocon acquired only the "Barnard and Burk" trade name, and
none of its liabilities, the Company is seeking to be extricated from
the suits via summary judgment. The Company believes the lawsuits are
without merit and intends to defend them vigorously.
Shares Outstanding: 24.08M
Float: 9.60M
% Held by Insiders: 60.13%
% Held by Institutions: 1.87%
Price/Book (mrq): 1.64
Total Cash Per Share (mrq): 0
Book Value Per Share (mrq): 0.794
T/A wise, looks like a bottom forming off the 52-week low of 1.26.
moneyflow is static, williams at a bottom, MACD improving, stochastic
crossed over a couple days ago from the bottom, and a faint heartbeat
on RSI and OBV. a little volume and this one should pop 20%, imo.
Anyone got anything on it? Thoughts?
Some T/A stuff on ENG
Support/Resistance
5 Day Support $1.29 5 Day Resistance $1.31
15 Day Support $1.29 15 Day Resistance $1.40
80 Day Support $1.29 80 Day Resistance $1.97
Price Pivot $1.29
Day Resistance 1 $1.31
Day Support 1 $1.29
Day Resistance 2 $1.31
Day Support 2 $1.27
WILLIAM VOLUME ACCUMULATION: Bearish
VOLUME PRICE TREND: Bearish
STOCHASTICS: Oversold
RSI: Neutral
MACD: Bearish
resist. 1.68 11
resist. 1.52 8
resist. 1.43 3
resist. 1.31 10
supp 1.20 2
Posted by: timhyma
In reply to: timhyma who wrote msg# 5988 Date:7/19/2004 8:33:16 AM
Post #of 11275
Looking at ENG again. About .75 cents cheaper (33%) than when I was
digging around last Dec. Trades at about 2X book and .28 sales. P/E
17. Oversold condition, and money flow, williams turning up. MACD is
still downtrending, so will have to watch closely.
ENGlobal Corporation is a provider of engineering services and
systems principally to the petroleum refining, petrochemical,
pipeline, production and process industries throughout the United
States and internationally. The services provided by the Company span
the life cycle of a project, and include feasibility studies, design,
procurement and construction management. ENGlobal also supplies
automation, control and uninterruptible electrical power systems to
its clients worldwide. The Company's business consists of two
segments, engineering and systems. The engineering segment offers
engineering consulting services to clients for the development,
management and turnkey execution of engineering projects and
inspection services. The systems segment designs, assembles,
programs, installs, integrates and services control and
instrumentation systems for specific applications in the energy and
processing related industries.
For the three months ended 3/04, revenues increased 35% to $31
million. Net income from continuing operations and applicable to
Common rose 2% to $471 thousand. Results reflect the continuation of
a large EPC project, partially offset by higher S/G/A expenses.
Recent price: $1.52
Shares Outstanding: 24.03M
Float: 9.60M
% Held by Insiders: 60.06%
% Held by Institutions: 1.96%
Total Cash (mrq): 44.00K
Total Debt (mrq)²: 8.98M
Book Value Per Share (mrq): 0.776
Support/Resistance
5 Day Support $1.52 5 Day Resistance $1.54
15 Day Support $1.52 15 Day Resistance $1.75
80 Day Support $1.44 80 Day Resistance $2.43
Price Pivot $1.53
Day Resistance 1 $1.53
Day Support 1 $1.51
Day Resistance 2 $1.55
Day Support 2 $1.51
STOCHASTICS: Oversold
RSI: Oversold
MACD: Bearish
WILLIAM VOLUME ACCUMULATION: Bearish
VOLUME PRICE TREND: Bearish
Posted by: timhyma
In reply to: None Date:12/16/2003 8:19:25 AM
Post #of 11275
Looking at ENG this morning. insiders hold 60% of the company, and
institutions have 3%.
They have been aquiring a few companies.
HOUSTON--(BUSINESS WIRE)--Dec. 11, 2003--ENGlobal Corporation
(AMEX:ENG - News) announced today that it has executed a binding
Letter of Intent for the purchase of 100% of the stock of Spectrum
Design Services Inc. ("SDS"), a Houston-based multi-discipline
engineering design firm. ENGlobal expects to complete its final due
diligence and make the acquisition effective Jan. 1, 2004.
Effective November 3, 2003, the Company's subsidiary ENGlobal
Technologies, Inc. purchased all the ownership interest in Senftleber
& Associates, L.P. ("Senftleber"), a Houston-based provider of
technical personnel with expertise in SCADA systems (supervisory,
control, and data systems). Senftleber produced over $2,000,000 in
revenues in each of the last three calendar years. Although this
acquisition is relatively small, it adds valuable technical
capabilities to ENGlobal Technologies, which can be utilized with
many of our existing clients. The Company is negotiating with several
larger potential acquisition candidates as part of our business
strategy to expand our presence in new or existing markets.
Effective June 30, 2003, the Company acquired selected assets of
Petro-Chem Engineering, Inc., an engineering services firm in
Freeport, Texas. This asset acquisition was financed through the
issuance of a $100,000 note payable. The acquired assets had a fair
market value of $25,000, resulting in $75,000 in goodwill. The
Company's goodwill increased to $13,286,628 as a result of this
acquisition
Legal stuff
From time to time, the Company is involved in various legal
proceedings arising in the ordinary course of business. The Company
is currently party to legal proceedings that have been reserved for,
are covered by insurance, or that, if determined adversely to us
individually or in the aggregate, would not have a material affect on
the Company's results of operations.
Engineered Carbons, Inc. filed a claim in 2000 against the Company in
the 60 th District Court of Jefferson County, Texas, alleging failure
of contractual performance purportedly caused by faulty design. The
claim is covered by the Company's errors and omissions insurance. The
Company has further reserved $100,000, the amount of its deductible
under such insurance. This litigation remains pending and is in the
discovery phase. Engineered Carbons has yet to specify the relief
that it is seeking in the litigation.
During the first nine months of 2003, the Company (and/or its
subsidiaries, in particular RPM Engineering, Inc.), and more than 40
other parties were named defendants in several petitions for damages
filed in various district courts in Louisiana (East Baton Rouge,
Calcasieu, Iberville, Ascension, and Orleans Parishes) on behalf of
former employees of Barnard and Burk, Inc. The plaintiffs, who allege
exposure to asbestos during the course of their employment, were
employees of Barnard and Burk, Inc. during a period covering the late
1950's through the early 1980's at facilities located within the
state of Louisiana. In 1994, AMEC Engineering, Inc. assigned the
trade name "Barnard and Burk" to RPM Engineering, Inc. along with
selected assets. No liabilities were acquired by RPM. The Company's
indirect wholly owned subsidiary, ENGlobal Engineering, Inc.,
formerly known as Petrocon Engineering, Inc., acquired RPM (RPM along
with the "Barnard and Burk" trade name) in 1996 pursuant to a stock
purchase agreement with Willie E. Rigsby and Robert A. Marks
(collectively, the "Sellers"). Because Petrocon acquired only
the "Barnard and Burk" trade name, and none of its liabilities, the
Company is seeking to be extricated from the suits via summary
judgment. In addition, AMEC has an obligation to indemnify RPM, and
furthermore, the Company is seeking indemnification from the Sellers
in connection with claims relating to products shipped or
manufactured by, or any services provided by, RPM and any of its
subsidiaries prior to Petrocon's acquisition of RPM. The Company
believes the lawsuits are without merit and intends to defend them
vigorously.
Posted by: timhyma
In reply to: None Date:12/16/2003 8:29:12 AM
Post #of 11275
This is a little dated, but Dutton like ENG <g>.
J.M. Dutton &Associates Announces Investment Opinion: ENGlobal Buy
Rating Maintained In Update Report By Dutton &Associates
Business Wire via COMTEX
Nov 5, 2003 2:01:00 PM
EL DORADO HILLS, Calif., Nov 5, 2003 (BUSINESS WIRE) --
J.M. Dutton &Associates continues coverage of ENGlobal (AMEX:ENG)
with its update report maintaining a Buy rating. The 13-page report
by J.M. Dutton senior analyst Robert Davis is available at
www.jmdutton.com as well as from Bloomberg, Zacks, First Call,
Multex, and other leading financial portals.
ENGlobal has begun showing signs of a developing acceleration in its
business growth. The Company reported major revenue gains of 31% to
$30 million in 2003 Q2 while net income grew 7%; EPS however remained
at parity with the prior year. Demand for ENGlobal's services has
grown significantly, as measured by a series of contracts for major
multi-year projects. These were partly the result of improved
petroleum industry profitability and the need for additional
production capacity, but also the Company's implementation of
stronger marketing programs appears to have been the major driver
behind these gains. Although ENGlobal has already seen substantial
price appreciation this year, the Company's stock appears undervalued
and could currently justify a market price of $3.00 a share, with a
potential valuation in excess of $5.00 based on achieving anticipated
2004 results. We are maintaining our Buy rating.
http://www.smallcapcenter.com/snapshot_newsrelease.asp?
component=compinfo.asp&page=snap_newsrele...
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