Sulja Bros. Building Supplies, Ltd (SLJB)

[smartinvestor]

TFN,honestly, I don't think is the best example

1)its market cap (19.2 Billions$) is way too high to make a realistic comparison with SLJB.
2)Its growth rate of about 20% per year over the last 5 years is nothing in comparison of what SLJB will likely have going forward.
3)its net profit margin(less than 7% is way bellow SLJB net profit margin

The middle east in general and Dubai particularly will dictate SLJB Market cap.

If you read carefully the post bellow you will see some of the fastest growing Building materials companies with detailed numbers,AND WHY SOME COMPANIES LIKE HANS and NTRI ARE MENTIONNED:

http://www.investorshub.com/boards/read_msg.asp?message_id=14201669



From: yassinzineb 10/22/2006 8:41:52 PM
Read Replies (1) of 987

Here's the study of a couple of US Building material companies with their financials over the last 5 years.


VMC 79.43$ Market cap: 7.66 Billions$ 52 weeks range:60.72-93.85 $ PE:19
Historical trailing PE: between 17 and 28
Net income
TTM 430.5M (eps 4.17)
2005 388.8M (eps 3.73)
2004 287.4M (eps 2.77)
2003 195 M (eps 1.90)
2002 169.9M (eps 1.66)

http://quicktake.morningstar.com/Stock/income10.asp?Country=USA&Symbol=VMC&stocktab=finance
http://finance.yahoo.com/q?s=vmc&d=t
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=vmc&sid=0&o_symb=vmc&fre....



FAST 41.40$ Market cap 6,25 Billions 52 weeks range:33.18-49.32 $ PE:32.47
Historical trailing PE:between 27 and 50
Net income
TTM 184.5M (eps 1.22)
2005 166.8M (eps 1.10)
2004 131 M (eps 0.86)
2003 84.1M (eps 0.56)
2002 75.5M (eps 0.50)

http://quicktake.morningstar.com/Stock/income10.asp?Country=USA&Symbol=FAST&stocktab=finance
http://finance.yahoo.com/q?s=FAST
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=fast&sid=0&o_symb=fast&f....



NCS 60.00$ Market cap:1.19 Billion $ 52weeks range:38.15-70.00 $ PE:19.5
Historical trailing PE:between 11 and 24
Net income
TTM 65.6M (eps 3.08)
2005 56 M (eps 2.68)
2004 44.9M (eps 2.24)
2003 22.8M (eps 1.20)
2002 -33.8M loss
2001 16.5M (eps 0.91)
http://quicktake.morningstar.com/Stock/income10.asp?Country=USA&Symbol=NCS&stocktab=finance
http://www.marketwatch.com/tools/quotes/profile.asp?siteid=bigcharts&dist=bigcharts&symb=NCS....



ACO 26.10$ Market cap: 782 Millions $ 52weeks range: 17.42 -33.50 $ PE:19.48
Historical trailing PE:between 15 and 30
Net income
TTM 41.5M (eps 1.34)
2005 41.M (eps 1.33)
2004 31.6M (eps1.03)
2003 28.9M (eps 0.97)
2002 13M (eps 0.43)
http://finance.yahoo.com/q?s=ACO
http://quicktake.morningstar.com/Stock/income10.asp?Country=USA&Symbol=ACO&stocktab=finance
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=aco&sid=0&o_symb=aco&fre....



I think it's interesting to note that all these companies support a PE of 20 despite the fact that their PPS went down
around 20% recently.
Secondly,despite the fact that these companies are growing nicely,they are far from having experienced the outstanding growth SLJB should have in the coming quarters/years.

In order to find companies with similar and outstanding growth,I think it would be a good thing to take a look at some companies in a different sector and as i posted already in one of my previous post
http://www.siliconinvestor.com/readmsg.aspx?msgid=22784401
HANS is a good comparaison.


NTRI is another one wich had an oustanding growth and was also very undervalued given its potential,back in 2004.
You could have bought NTRI in 2004 at 1.50 $ when the company had a tiny market cap of 45 Millions.

NTRI currently trading at...65.43$ with a Market cap of 2.43 Billions $. Trailing PE:43.62
Historical trailing PE: between 40 and 150
You could have bought NTRI in 2004 at 1.50 $ when the company had a tiny market cap of 45 Millions.
current 52 weeks range: 27$ - 76.33$

Net income
TTM 55.6M (eps 1.50)
2005 21 M (eps 0.59)
2004 1M (eps 0.03)
2003 0.8M (eps 0.03)

http://finance.yahoo.com/q?s=NTRI
http://quicktake.morningstar.com/Stock/Income10.asp?Country=USA&Symbol=NTRI&stocktab=finance
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=ntri&sid=0&o_symb=ntri&f....
http://img331.imageshack.us/img331/1470/ntri2004rk8.png


The more time goes by,the more SLJB appears to be a bargain because of less uncertainty and more visibility and transparency of the business plan.
The CEO just announced a 98 M cement deal and much more to come.
We didn't even started the new fical year 2007(Jan.to dec.07).
The audited results should add a lot of credibilty for 2007 and the initial 307M in revenues and 56M (EPS .11) net profits should be within reach,and could be raised significantly.
Petar said:"As far as future contracts are concerned, I fell our offices in the Middle East will easily reach their targets".
it appears that the CEO is very comfortable with the 2007 projections.
As i said to our friend Creede in one of my previous post,
I'm more and more convinced that there's a significant chance that we should trade between 2 and 6$ next year depending what PE you apply and depending about future contracts.
It's all about the risk/reward ratio...and IMHO it's very positive at this point.
Anyway,right now,I'm pounding the table on SLJB and feel myself very comfortable owning the stock,currently trading at .165$ with a tiny market cap of 82 Millions $.

SLJB in my view should have sooner rather than later a bigger market cap than ARTC.DU,a Dubai stock,(see my previous posts)
http://www.ameinfo.com/financial_markets/UAE/Company_AE0124/
valued at 771M and it's very possible that SLJB will enjoy "the NTRI growth" currently valued at 2,4 Billions $.

Have all a great Sunday night and be prepared for an interesting week to say the least.