UNDERVALUED STOCK FORUM:
This forum is for sharing UNDERVALUED stock opportunities. We would appreciate solid information and no hype. Suggest that you document everything with URL links.
A basic but seemingly valid approach is to look for stocks with growth rates greater than their PE ratios. Then check the annual report, 10K, proxies, analyst reports, call the company directly, listen to the quarterly conference calls, understand the competition and otherwise be a dective to verify the analyst EPS forecasts.
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I will go out on a limb and recommend one here. To give a sample of what I might like to see. But just your your judgement and please try to provide information on what you think is important.
HMAR. Hvide Marine. hvide.com
8/9/97 Closing 27 3/4 bid, 28 1/8 ask.
EPS (ttm) $1.35 (0.36,0.29,0.33,.0.37)
Present PE is 20.8
EPS fcst next 4 is $2.46 (0.54,0.60,0.65,0.67) source Zacks - 3 analysts.
Results for the last Qtr were 0.37 vs a forecast of 0.32. And an increase in revenue of 100% for both Qtr and Half YTD. Analyst 5 year growth estimates at 45.5%. (from Zacks)
This company is aggressively growing the business by adding capacity and acquisitions. On May 14 they acquired a 37 vessel fleet in the middle east and on 6/24/97 they raised $100M of preferred/convertable securities to allow continued acquisitions. Their objective is to reach $500 million of revenue by year 2000. They did $71M in 1995, $109M in 1966 and did $46M last QTR! (Q2-97).
Margins are increasing due to favorable supply/demand and competitive issues. Day rates are increasing for ships and according to the company (via the quarterly conf call). They see trend continuing. Mgmt seems solid to me.
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