Value Microcaps Motherboard

[nutsaboutgolf2001]

SMID As was previously reported SMID got another large contract today worth 3.5 million dollars. Last quarter, they had revenues of 6.4 million and earned a somewhat disappointing 5 cents. But their backlog continued to grow to what I believe is the highest in the company's history. That backlog was $14,800,000 with most of it for sale in the 4th quarter and first two quarters of 06. I'm predicting that will be split 40 % in the forth quarter and 30 % in each of next two quarters. In addition they have a fair amount of normally recurring business, I'm guessing that will be 1.5 million per quarter. The new project should show up as revenues in the 1st quarter. Given the above my estimated revenues for the forth and first quarters are 7.4 million and 9.4 million. Hard to forecast what will fall to the bottom line but these are record revenues and I expect there's a lot of leverage in this business. I think I remember reading that their margins are higher on Slenderwall than on most precast products, so I think Smith Midland will report blow out numbers. If I had to guess (and it's only a guess) I'd say 12 cents after tax in forth quarter and 20 cents after tax for the first quarter. That 20 cents with a strong second quarter (given current backlog) still in the works should propel the stock to well above $4. While the stock was up 19 cents today to 2.45, I figure it still has a long way to go. Moreover, this story may be one of the best in the longer term, but of course time will tell.