EEI
I brought some EEI which in my opinion represents an attractive turnaround play in the mid 10’s. So without further ado here is what I like.
1) EEI currently yields about 4.6% at current prices, which is a very nice yield to be paid while you wait for better prices.
2) EEI earned a whopping .42 this past quarter, and q3 is not even their seasonally strongest quarter as q4 and q1 are even better, so I expect back to back .50+ quarters before seasonally weaker q2 which I expect to be profitable at even sales similar to this q2, as Operating expenses due to effective cost cutting has dropped significantly. If sales stay within the range of 120-125 Million going forward, I see scenario where earnings run in the $1.45-1.65 range over a 12 month period. Pop a 10 PE on it and you get a $15 stock in my opinion. Although as I always say you never know with earnings.
Conclusion: EEI do to cost cutting has made themselves a rather attractive turnaround story. There also is a solid dividend yield story as well, and a cheap valuation story. So combining beatable comps, with a good divvy, with a cheap valuation, makes me think this stock offers a solid risk/reward at current prices. Of course we never know with earnings, but I like EEI and think it is very attractive in my opinion. All is just my opinion, and I could always be wrong though.
