Berger Holdings, located in Featerville Pennsylvania, is a maker of roof drainage products.
I went to their shareholders meeting last week. Of the 13 people attending the meeting, only 4 were not affiliated with the company. I was the only one in attendance who was not (yet) a shareholder. This stock had an astonishing rise last year - I had been watching it. At the current price of $3.71875 I think this stock has very nice appreciation potential within the next 6 to 9 months, and beyond.
I liked and was impressed with their top leadership. Conservatively, they anticipate finishing the year with $21-22 million in sales with $1.5 in income. However, they also expect "significant plays" within the next 6 to 12 months - (acquisitions). I was given the impression that something big may happen before the end of the year.
Not too many people seem to be interested in this company right now, but among those who follow it, the company is considered to be financially strong and significantly undervalued. An interesting research report can be found at the company's web site: bergerbros.com
Positives:
* They just pre-announced record first-half sales and expect to report a record net income for the same period.
* They also have just arranged a new $5 million line of credit at 275 basis points less than their old credit line. $3.5 for working capital, $1.5 for equipment.
* In June they began a relationship with an investment banker to assist in acquisition pursuits and I heard them say a new research report will be coming out soon and that they will be engaging in a new campaign to promote the company to institutional micro and small-cap investors within a month.
This is the only public company of it's kind. And they are looking to expand geographically while concentrating on their niche. Their first acquisition, which was completed earlier this year, gave them the largest lineup of "snow guards" - and the acquisition is working out well with profit margins of around 50%.
I liked how the meeting went. Theodore A Schwartz, chairman and CEO, and Joseph F. Weiderman, president - both impressed me. They are confident and both possess an aggressive outlook. In the short term and long term there is opportunity for profit here. Their goal is to achieve $100 million in sales within 3 years. Over time they expect "a dramatically higher multiple."
Contacts: Joseph Weiderman 215-355-1200
Theodore Schwartz 215-355-1200 Ext 123
Internet: bergerbros.com |
