Nsomniac challenge-
AIRT- (Nasdaq $8.82) Air Cargo servies- Main thing it that they'll have revenues and earnings coming in from the new Northwest Airlines deal going forward. Earnings should spike quite a bit from that alone. I think the stock is selling at a 8 PE going forward in a sector which could support as high as a 15 PE going forward- especially with the great growth potential over the next few qtrs. Also I like the sectors they cater to as they're largely non consumer discreitionary.
SUOT.OB- (bulliten board $4.20) Great China steal finishing fabrication products company. Nice sequential increases which look to continue. Very strong growth. PE is only 6 going forward, and I feel a PE of 10 going forward is warranted.
SGZH.OB-(bulliten board $6) Coal company in China. I like the 10 for 1 reverse split they just had as I feel it was for the purposes of getting on a better exchange. They appear to be growing very rapidly. They look to be selling at a 6 PE going forward. However they just made a large aquisition which will dilute shares by 50%. The big question is- will the new aquisiton be accretive enough to over double the EPS? If not, then it was not a good aquistion IMO. I'm betting that the new aquisition will add way more than double the present EPS, but it's mostly speculation at this point based on past performance of the company. A liitte more of a gamble on this one, but the payoff could be big.
AYSI- (bulliten board $1.58) A great little company in Australia- They engage in the manufacture and distribution of Arcoplate, a wear-resistant alloy overlay wear plate, primarily in Australia. It offers fused-alloy steel plates for installation and use in structures and machinery that suffer wear and hang-up problems. I like the fact that the industries they service are doing very well. AYSI is having very strong growth, which looks to potentially continue all through 2008. The PE going forward right now is 9 fully taxed, but they are growing so rapidly that I feel a 20 PE going forward is warranted.
ATRM- (Nasdaq $4.97) Semiconductor testing equipment. Not a popular sector at present, but the company claims(as of Dec 07) demand is still high for their product. They do 66% of their business outside the US where economies are still going strong. They had 100% growth in EPS for the Sept qtr over the June qtr, and they sounded very excited about continued strong growth into their Dec qtr in their last earnings PR. The company is presently selling for a 9 PE going forward untaxed, but if they continue with anywhere near the strong growth they've been having recently, the PE deserved would easily be 15 going forward(untaxed). Also they have no tax concerns for quite some time from what I understand.
CIMT-(Nasdaq $3.14) Israeli company. "Cimatron, Ltd. engages in the design, development, manufacture, marketing, and support of a family of computer-aided design/computer aided manufacturing (CAD/CAM) software products". The company just made an aquistion, which should send quatrely EPS up quite a bit. I'm figuring that with this aquistion, the stock is selling at a 7 PE going forward fully taxed. With the growth I'm expecting, I feel the company could bring in a 15 PE going forward fully taxed.
