SwingTrade Member Forum

[MikeDDKing]

TPCS is a manufacturer of metal fabricated and machined precision components. IMO they appear to have good odds of being a multi-bagger. Here is why:

1. For the next quarter (fiscal Q2'11 ending Sept 30th) they are guiding for gross profit and operating income to be higher than in Q2'10 (disclosed in the CC). I think this implies higher earnings as well. They made $0.062/share in fiscal Q2'10 so Q2'11 earnings will likely be very good for a stock trading at roughly $1.

2. TPCS has trailing TTM earnings of roughly $0.14. They are trading at a trailing PE of roughly 7 or 8.

3. TPCS has a huge growing backlog. As of June 30th they had a backlog of $25.2M which is roughly 4 times the revenue from last quarter of $6.2M. Additionally, TPCS has signed $13.5M of new orders since then.

4. TPCS has a pristine balance sheet with book value of $0.71/share and cash of $0.67/share.

5. TPCS is seeking an uplist potentially using a reverse split to get the share price up. At the rate earnings are growing I think they will not need a reverse split.