SwingTrade Member Forum

[SSKILLZ1]

Brought a small position today in SCX.

(On SCX) Stock is now trading approximately $10 under book. Here are some other reasons to like this one.

First of all the balance sheet this stock trades at a heavy discount to book for a lot that would be enough right there.

Secondly stock is a long-term grower.

Revenues
FY2003 175,711
FY2004 179,996
FY2005 195,909
FY2006 200,916
FY2007 222,356

As we can see revs continue to be in a solid uptrend. Shown by q1 (FY 2008) impressive performance where Revs grew 16.55% y/y. Earnings grew to .35 versus .03 now that is super growth to the bottom line. Here's the thing that .35 appears to be in there weakest quarter, Revs were the lowest in q1 by a substancial margin compared to the other quarters for the previous two years, so maybe even a much better quarter just from a seasonal perspective, get us there, and growth appears to be picking up as well. q2 appears to be 2nd strongest quarter.

There even more reason to like this stock they have a high level of international sales (For a microcap stock), Specifically in Brazil, Mexico, and the UK. So sales are not all to the US Market which I also like. Overall looks like a pretty intriguing play here should be trading near book, so seems undervalued to me. Granted I could always be wrong though.