Stealthgas Inc. (GASS)

[Tommy]

$GASS - StealthGas: From Bargain Bin To High Stock Growth Potential

http://seekingalpha.com/article/1462211-stealthgas-from-bargain-bin-to-high-stock-growth-potential

... "Balance Sheet/Cash Flow

The company ended the first quarter with $52 million in total cash and $300 million in total debt. For 2012, the operating cash flow was $48 million. This was an increase over $42 million in 2011 and $28 million in 2010. The new catalysts for the company should help improve upon these figures going forward.

The Risks

The continued exposure to Greece is a risk-factor for StealthGas. However, the European Union has implemented a debt restructuring plan for Greece. This plan, known as the Private Sector Involvement, wrote-off $100 billion of debt. The European Union remains committed to avoiding a default. Nevertheless, the company's exposure to Greece remains on the backburner for the company.

Earnings Growth Expectations

StealthGas is expected to grow earnings at 4.2% this year and 25% next year. This puts a tangible number on the catalysts mentioned above for the company. The six analysts covering the company have an average one-year price target of $13.90. This represents a 43% increase over the current price of $9.70. I think that this is a realistic price target due to the current deep undervaluation and positive conditions facing the company. ...