6 month results were published in Financial Post today indicating
earnings per share of 0.15 vs. a loss of (0.67). This is a microcap stock which is somewhat illiquid (hi / lo : 1.30 / .25) and is currently trading for 1.05. The stock is trading near the 52 week high and it reflects part of the turnaround but not all.
The company is diversified globally and by product as it manufactures die cast machines for export for manufacture of automotive, consumer and electronic goods.
Excerpts from SEDAR filing for Q2 results show that company is booming and earnings should be very positive (.30+ for year).
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During the second quarter of fiscal 1998, which ended on January 31, 1998, the Company's revenues were $3,338,510 representing an increase of 26.8% compared with the same period of fiscal 1997. Revenues for the first six months of fiscal 1998 were $8,117,293 representing an increase of 53.1% compared with the same period of fiscal 1997.
Net earnings for the second quarter of fiscal 1998 were $201,031 compared with a loss of $1,072,472 for the same period of fiscal 1997. Net earnings for the first six months of fiscal 1998 were $427,166 compared with a loss of $1,351,065 for the same period of fiscal 1997.
Basic earnings per share in the second quarter of fiscal 1998 were $0.07 compared with a loss of $0.52 in the same period of fiscal 1997. Basic earnings per share in the first six months of fiscal 1998 were $0.15 compared with a loss per share of $0.67 in the same period of fiscal 1997.
At the end of the second quarter of fiscal 1998, the Company's capital lease obligations and long-term debt (excluding current portion) were $1,344,388. This represented a reduction of $515,562 from the figure at the end of the second quarter of fiscal 1997.
During the first six months of fiscal 1998, the Company experienced a net increase in cash of $315,662 compared with a decrease of $283,070 during the corresponding period of fiscal 1997.
The Company's strong financial performance during the first six months of fiscal 1998 was mainly attributable to:
Increased sales, principally due to improvement in the North American market and expansion of the Company's network of overseas agents.
Continuous improvement in operations, particularly in the areas of risk management, project management, inventory control, production planning and production control.
Installation of a new Management Information System, which facilitated more rigorous control and faster decision making.
Ongoing aggressive implementation of the Company's cost reduction program.
The Company's order book is presently good. Sales to North and South America remain buoyant, and there are indications of improvement in the European market, which was depressed throughout fiscal 1997.
Management expects that the Company's strong performance during the first six months of fiscal 1998 will be maintained for the balance of the fiscal year.
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Investors may need to be patient with this stock as it is a microcap with limited shares outstanding. |
