EXXA $1.53 up 10c...Recent $25M/yr DaimlerChrysler Contract Win.
EXXA is starting is inevitable climb up. Big blocks lining up on the bid....not many shares for sale at these prices. Only 4.7M shares in the float and $17M market cap.
Enter EXX/A in your streamer to view the action.
HIGHLIGHTS:
* Last week EXXA reported 4c/share net income for 1Q 2005 on $37M revenues.
* Two weeks ago, EXXA signed the company's largest deal ever. This is a monster $25 Million/year contract with DaimlerChrysler (DCX)for powertrain components. Here is the link for the DCX contract:
* The DCX deal will completely replace business lost from American AXLE announced a few quarters ago.
* EXXA is starting to manufacture parts for DCX in this second quarter of 2005 ramping up to full production by 4Q 2005.
* American AXLE will start manufacturing some its own parts in 3Q 2005 and continuing throughout 2006.
* The overlap caused by a fast ramp to full production for DailerChrysler parts, and the gradual pull out by American AXLE will cause EXXA to generate record revenues and net income for several quarters to come. Don't be surprised if EXXA posts 2003 like income of over 40c/share in 2005 and 2006.
* At these prices EXXA is very the most undervalued stock in Wall Street. Once the investment public catches on with EXXA's significant growth potential, EXXA will be trading North of $5 like it did in 2003. My bet is that that will happen in the next quarter or two. BTW, the 2004 pps decline was caused by the AXLE announcement.
Here is a portion of the DaimlerChrysler announcement:
DaimlerChrysler Awards Significant New Powertrain Business to a Newcor Subsidiary Monday May 9, 5:35 pm ET
LAS VEGAS, May 9 /PRNewswire-FirstCall/ -- EXX INC (Amex: EXX-A; EXX-B) today reported that one of the subsidiaries of Newcor, Inc. (a 99% owned subsidiary of EXX INC) has received purchase orders from DaimlerChrysler Corporation (DCX) to machine axles for two current powertrain programs. The anticipated sales would approximate a 20% increase over EXX's current sales and profitability on an annual basis. Production under the contracts is planned to begin shortly and build up to full production levels in the fourth quarter of 2005.
EXXA BY THE NUMBERS:
* LOW FLOAT = 4.7 MILLION SHARES * 2004 REVENUES = $143 MILLION * 2004 NET INCOME = $1.5 MILLION * O/S SHARES = 11.3 MILLION * MARKET CAP = $15 MILLION * HEAVY INSIDER BUYING. INSIDERS OWN 54% OF COMPANY (Yahoo numbers are wrong...read the filings)
To buy EXXA shares you need to enter EXX/A in your equity order form. You might just want to tell you broker to buy the shares for you....it cots a few more penies but it is certainly worth it. I did just that as a matter fact.
ABOUT EXX Inc.
Newcor Inc., one of EXXA's largest subsidiaries operates seven companies employing over 1,000 people in virtually all areas of design, engineering, and manufacturing of a variety of products, principally for the automotive, heavy-duty, agricultural and industrial markets.
Newcor focuses in two areas: precision machined components and molded rubber and plastic products. Newcor reports its businesses under two product segments: Precision Machined Products and Rubber and Plastic Products. Newcor also operates the Bay City Division, which designs and builds state-of-art welding and forming equipment.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.