Value Microcaps Motherboard

[kipp440]

Hweb pounding table on USAP 7/8/05

His post trying to get us to take notice:

Posted by: hweb2
In reply to: None Date:7/8/2005 1:09:05 PM
Post #of 16681

Any thoughts on USAP? Tempted to buy more before the Q2 report on 7/20. After watching LMIA fly this week...I don't think people are appreciating that USAP's largest market is aerospace. This niche player also serves the strong petrochemical and power generation markets. They couldn't have been more bullish on the last CC (still available on their homepage).

Yet the stock is down with the rest of the steels. Doesn't seem like much is priced in at $12.40. Book value is around $11. Q1 earnings of .45/share vs. .04/share last year. Q1 revenues up 102%.

Guided for Q2 revenues of $40-$45M vs. $29M last year. Guided for Q2 earnings of .40-.45/share vs. .25/share last year. Huge backlog of $88M, up sequentially from $72M. Q3 could be better than Q2 as last earnings PR noted backlog increase was due to products that will not ship until Q3 and beyond.

Company announced a couple of price increases in Q2 and they're also adding another remelt furnace to meet demand. The 5/7/05 PR commented that backlog to melt VAR products increased 10% in April despite running current furnaces 24-7. Should bode well for Q2 results. With its tiny float, if USAP hits their Q2 targets and give positive Q3 guidance, stock could jump back to the $15-$18 range IMO.