SBS Technologies looks to be a great yet undiscovered company.
One of the hardest things about investing in stocks of unknown
companies is that the wait for discovery can drive you crazy. But when
the funds finally find your company, the wait can be worth it !!!
SBS Technologies: Recently reported results ($000)
Jun30 12 Months
1996 1995 1996 1995
----- ----- ------ ------
Revenues 8,418 4,897 31,331 16,217
Income 1,116 120 3,581 1,844
EPS .29 .04 .97 .63
Net Profit
Margin 13.2% 2.4% 11.4% 11.4%
Net income rose every quarter in 1996: $722 $776 $966 $1116
Quarterly revenue grew from $7575 (1st) to $8418 (4th) quarter.
Since selling off their flight simulator business and purchasing
Greensprings Computers the company has grown on a nice steady path.
Along with a great 4th quarter earnings report the company also
announced the acquision of Logical Design Group ($4 million revenue)
and introduction of some new data interface products.
1st quarter 1997 results are due around Oct-16-1996. My estimate is
for $.30 vs $.22 last year. Full year estimate is around $1.25 and
that is before the Logical Design purchase. I am very impressed with
the current managements ability to grow the company. If my estimates
are near the mark and a few funds look into the company and if the
market makers are forced to cover their 85,000 short position in the
stock, SBSE should be a $20.00 stock within the next 12 months.
($1.25 x 16.0)
Does anyone else own or follow this company? I have followed the
company since 1994. Got in originally at $5. Sold out at $7.50.
Got back in at $9-$10. Bought more at $11, $12, $13 and $14.00. |
