lentinman: ACSEF
I've been accumulating in the low 6's. This stock was a winner for me late in '03 into '04 when they came in with a series of strong earnings reports. The stock is down over 50% from its 52wk high of 12.59 and is showing strong support at this level. Evidently the Company's guidance for a sequential decline in Q4 revenues is the reason for the big pullback, but they also indicated that growth should resume in Q1. EPS of $0.56 for 9mos is pretty good for a $6 stock, especially considering the huge y/y growth and the hot digital motion control sector they're in ... Q4 results are due out shortly, but I think the expected temporary lull in growth is already fully in the stock. The forward guidance will be the more important thing ... from the Q3 PR ....
Revenues for the third quarter were $4,108,000 compared to $2,510,000 recorded in the third quarter a year ago. Net income in the third quarter of 2004 was $735,000, or $0.22 per share, compared with net income of $276,000, or $0.10 per share in the third quarter a year ago. Revenues for the nine months period ended September 30, 2004 were $10,792,000, compared to $6,590,000 in the same period a year ago. Net income for the nine months period ended September 30, 2004 was $1,877,000, or $0.56 per share, compared to $507,000, or $0.18 per share in the same period a year ago.
This is the seventh quarter in a row with sequential increase in activity and results. Based on softened demand in the last few weeks and on inputs from our leading customers, we expect to see a decrease in revenues in the fourth quarter relative to the third quarter, but a significant increase relative to the fourth quarter of 2003 and renewed growth in the quarters afterwards.
