Is there a more undervalue stock than HFGB at the present time.
A conservative management gave 2010 guidance of a revenue range from $20-25M.
They are on pace to have revenue near $30M.
Net income guidance of a range from $4.5-5M.
They are on pace to have net income near $6M
With 25% more shares outstanding this year they already have eps of $0.10 vs $0.02 last year.
Look at the stocks history about 2/3rd of revenue & most profits are registered in the 2nd half which is harvest & squeezing season.
Last years 1st half revenue of $4,417,420 became full year revenue of $13.7M with net income of $3M or $0.15 eps.
In this years 1st half HFGB had revenue of $10,850,838 extending the obviously good revenue gains of the traditionally slow 1st half its easy to see HFGB with 2010 revenue closer to $30M than their guidance for $20-25M.
With more revenue has come increased margins so I think net income closer to $6M than the $4.5-5M guidance HFGB gave is likely.
Analyst numbers I have seen have HFGB's eps @$0.20 in 2010.
I think even taking into consideration the increase in shares for 2010 that HFGB should beat that $0.20 eps projection by 10-15% giving HFGB about 50% eps growth over 2009.
Most of this gain will be thru internal growth as no planned acquisitions have been done to my knowledge this year.
Quite a amazing job done by a experienced management.
Keep in mind HFGB is selling well below B.V. stated @$0.70 before 2nd qtr results.
Accounts receivable also decreased in the 2nd qtr in spite the huge revenue gains.
What more does a $0.55 stock need to do to gain recognition as a severely underpriced stock.
I am looking for eps of $0.225 in 2010 giving HFGB a p/e ratio of 2.5 in spite the excellant job done by management.
Sure some increase in shares outstanding should be expected at some point because management has visions of increasing the companies size 3 fold thru acquistions & increased manufactoring ability & cash flow while excellant can't pay for all that kind of growth.
AI
