2morrowsGains - MVCO
I sponged this one off of Hweb. He found it back in April in the $4's and I am in in the high $5's. Read Hwebs Yahoo post:
What am I missing?
by: hweb2
Long-Term Sentiment: Buy 04/22/05 11:12 am
Msg: 1003 of 1079
Without the $5.2M loss from the Utah project, MVCO would have earned about $1/share last year. Balance sheet has almost $3/share in cash! Backlog of $93.6M, up from $70.6M. Planning to spin off Ready Mix as an IPO this quarter. Lots of buyers a few weeks ago in the $7's...now nobody wants it in the $4's??
KEEP THIS IN MIND: 3.65 million shares outstanding, 2.18 in the float. The company lost over $5 million last year on one bad job called "gooseberry" in Utah.
This is from CEO 30 days ago: "Key economic and demographic drivers in our core markets remain favorable as we look into the new year, enhancing our confidence that the current upward trends in the construction industry will continue. We have been increasingly discriminating in the types of projects we bid (i.e., public vs. private, location, owner, etc.) and how we bid them in order to improve the quality of our backlog. The result is that contract backlog at the beginning of 2005 is not only up 32.4% to $94 million compared to $71 million a year ago, it also is composed of projects with the potential for better margins and less downside risk.
On balance, we are pleased with our progress in 2004, and we look forward to a more profitable and enjoyable 2005."
If this company reports monster numbers for this quarter the price should rocket. Too early for it to be called the next IPII, we will have to wait for earnings for that!
I will look into the IPO status. It is supposed to happen in the next 2 weeks.
Good Luck,
Kipp
