MicroCapTrader.com Announces Investment Opinions on Allied Devices and Cade Industries
HUNTSVILLE, Al.--(BUSINESS WIRE)--June 28, 1999-- MicroCapTrader.com, an internet based investment research site, has announced its opinion on Allied Devices Corporation (NASDAQ:ALDV) and Cade Industries, Inc. (NASDAQ:CADE). Both companies are considered strong buys.
Allied Devices Corporation is a leading manufacturer and distributor of high precision mechanical assemblies and components used in industrial and commercial equipment. The Company's business strategy is to provide prompt service and technical support in certain industrial and high technology markets where customers generally expect extended lead times, missed deadlines and otherwise poor customer service and support. The company's stock is currently trading well below its book value of $1.89, with a P/E ratio of 7.65 and trailing 12 month earnings of $0.15 per share. Despite weakness in major overseas economies over the past year the company has managed to grow revenues to record levels. As those economies regain strength, Allied Devices should see increased revenues, stronger margins, and consequently, stronger earnings.
Cade Industries, Inc. is engaged worldwide in the design, manufacture, and repair and overhaul of high technology composite components and engine test facilities for the aerospace, air transport and speciality industries. Based upon the company's performance over the past three years, CADE was listed as the 33rd fastest growing company in Fortune Magazine's annual ranking of America's Top 100 companies. Cade entered 1999 with strong business fundamentals and is positioned to build on its 1998 accomplishments. The company's 1st quarter 1999 net income of $1.3 million represents a 42% increase from the prior years first quarter results. Management has stated that that they believe their 1999 financial goals of 15% revenue growth and 25% or better earnings growth are achievable. In addition to growing revenues, CADE intends to improve its bottom line by pushing margins beyond 5% in 1999 and improving cost structure and operating efficiencies. Along these lines, CADE reduced its SG&A expenses by 2 full percentage points from 16.3 in 1998 to 14.3 in 1999 and increased productivity by 10%. Cade is currently trading at less than two times its book value of $1.25 per share with a PE of 11.5 and trailing 12 month earnings of $0.21 per share.
CONTACT:
MicroCapTrade.com
Jay Elbe, 256/533-7631
jay@microcaptrader.com
microcaptrader.com
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