Profire Energy, Inc. (PFIE)

[newmedman]

Nice to see you back around UHC...

Historically this has been a weaker quarter due to the winter weather and this year has been awfully cold and snowy... It especially made a dent when they were only in Canada..

The expansion into the US seems to have really taken hold though... Last quarter was their most impressive by far and they've had to expand warehouse space since then so there appears to be no signs of slowing down just yet...

They had a pre tax income of 3.6 mil on 9.3 mil revenue last quarter.. EPS .05/.04(fully diluted)

Conservatively I would expect those numbers to remain static rather than increase, but the company really surprised me last quarter so they just might do it again. In less than a year the U.S. revenues have started to surpass the Canadian revenues and they are only getting started here in the states.
They did expand a little more, and hired some new executives (impressive btw) so there's probably going to be some added expenses... There's also about 3 million more shares in the O/S.

I don't know a whole lot about the overall industry(oil/gas) so it's hard to make a solid prediction based on their activity.

I'm also not sure how the recent capital raise gets booked. 4.7 million will sure look nice on the balance sheet, wherever it is, though...

I'd be happy with another quarter at .04 EPS. Anything higher would be a huge plus. There are 2 analysts covering PFIE according to my scottrade quote and their consensus is .03.... It would be nice to beat them...

Our P/E is pretty high at 45 and that's the only thing that concerns me right now. It kind of limits the potential upside to the PPS and leaves the door open for a correction. I know as they continue to post solid numbers the P/E will come down but if they miss estimates we might get a little haircut...

either way, anything will be better than that quarter we had to endure last year. In hindsight I wish I would have gobbled up more shares when we crashed, but I was really second guessing myself at that point... I have a feeling now that it will never happen again.

Good luck.... glad you stuck around.