Everyone, I took a major position in this stock without really hyping it. I hope some of you got some. I think there is still quite a bit of upside to it. I was hesitant to mention it too much because it popped up from 6 1/8 to 7 1/8 the day I bought it, which just goes to show something. It was up today, but I think it's good for another 10% early tomorrow. Even with a 50% bump up, the PE is low compared to my estimation of its growth.
I don't give my sister stock tips anymore, I just tell her what I'm buying and selling. I seem to practice better than I preach
Anyway, this stock is fantastically undervalued. Please check the SI thread and note that Gunther's .75 earnings estimate for this year does not include a pure-profit $6MM fee due when the permanent financing on the Brooklyn Naval Yard closes, or whatever profit they get from the fairly-well guaranteed $62.5MM/year in revenues for 30 years thereafter. IMHO the 1997 PE on YORK is really about 10 and the forward-looking growth in the 30% range.
I say all of this because I'm trying to help, please don't blame me if it tanks -- it is a very small company and the income growth is therefore kind of shaky. I have a very serious position in it myself.
>>Headline: York Research Jumps 17% After Magazine Article, Deregulation Pact
======================================================================
By Janet Morrissey
Staff Reporter
NEW YORK -(Dow Jones)- York Research Corp. stock rose 17% Thursday,
which analysts attributed to the company's name appearing at the top of
a financial magazine's list of 100 hot small companies.
The stock also was propelled by Wednesday's agreement between the New York State Public Service Commission and Consolidated Edison of New York (ED), to spur competition among utilites, market watchers said.
York stock (YORK) closed at $9.125, up $1.313, on Nasdaq volume of
668,600, compared with average daily volume of 75,600.
The July-August issue of Financial World, which hit the newsstands on Sept. 2, lists York Research at the pinnacle of its top-100 index of the hottest small companies in terms of sales growth.
The article said the $46 million energy service provider's sales
jumped 82% annually over the past three years. But the article also
cautioned investors. "York, like many micro caps, (could be) either a
diamond in the rough or a potential land mine," the article said.
The appearance in the magazine as "the hottest small company in
America" thrust the company into the investor spotlight, said analyst
Gunther Karger of Discovery Group Inc.
The company was promoted further when CNBC announced Thursday that
York Research Chairman, President and Chief Executive Robert Beningson
would be appearing on the network Friday to discuss the magazine's
pronouncement.
"I noticed the stock rise shortly after the TV announcement," said
Beningson. "It just took off."
Beningson said he expects the company to wind up fiscal 1998 ending
February with four or five times the level of sales it achieved in the
previous year. In fiscal 1997, the company reported revenue of $46.3
million. The New York company surpassed that level in the first quarter
ended May 31, when it reported revenue of $47.4 million.
Discovery Group's Karger said Wednesday's revised pact between the
New York State Public Service Commission and Con Edison helps open the
door to competition in the power industry in New York. The agreement
moves the region another step closer to ending Con Edison's decades-old
power monopoly, with all New York Con Edison customers expected to have
free choice by Dec. 31, 2001.
York Research, an independent power producer, is expected to benefit
from deregulation. Any activity or progress made toward that goal is
good news for York, Karger said.
York's financial chief said he, too, sees deregulation as a source of
growth for the company and agreed that Wednesday's news helped attract
investor interest.
Beningson added that he expects to make several "significant
announcements" before the end of November on projects that are under
negotiation. He said several involve overseas co-generation projects,
likely valued at $100 million to $500 million apiece, and several are
smaller U.S. wind-power pacts worth about $50 million each.
The company recently received a $600 million contract to build a wind
turbine power system in Kazahkstan.
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