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Re: badman post# 3

Monday, 01/28/2013 9:06:27 PM

Monday, January 28, 2013 9:06:27 PM

Post# of 59
Hmmm...AndNowWe...oldmanbadman rdncoic

And now we will all enjoy the buyout (Company going Private) for a nice pile of money for our shares. Coming soon. oldmanbadman rdncoic

shaun noll, cfa



huge special dividend and 500% sequential increase in backlog are hugely positive and my new price target is $3+ per share based on big cash dividend and shareholder friendly action with >$1.2m in net income estimate for 2013. Stock has doubled since this writeup but fundamentals have improved even more than the stock price imo. Management has a fantastic track record and are exceptional operators so I am very happy to have my capital invested with these guys.

Post $4.2m dividend investors are paying ~$11m for a company that, by my estimates, will STILL have about $3m more capital than it needs, so we can strip that out for $8m for the core business that is likely to more than double net income to well over $1m in 2013 and >$30m in revenue. Stupid cheap at .25x revenue and 7x earnings depending on your estimates. Depending on how things go in 2013 it is not hard to see net income actually be >$2m which gives you 4x earnings for a very low to negative working capital generating low teens ROE (stripping out unnecessary cash) that is now growing revenue organically 20%+ and will more than double net income this year with a history of paying out big dividends. RIDICULOUS VALUE.

and in the mean time the company continues to burn cash to be publicly traded for no reason. That $300k+ a year in lost time and money can never be recovered so hopefully management uses this cash as equity in a management buyout. Even if management paid $4 per share for the stock they don’t already own they would STILL make a killing and if they leveraged up to the MAX on their undrawn revolver they would still have >3x interest coverage and they could immediately begin paying that down, so even at max leverage they would still be a very strong company.

disclosure: still long EVI
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