Ken,
Since you have a feel for REN would be interested in your opinion regarding Stephen Leeb's analysis. He doesn't always call em right!
Wish I had a scanner....but without taking it out of context here's my take on his more important comments:
"REN is the industry leader in commercial inceneration and has operations in waste processing, recycling, repackaging, analysis, and site management. It's been on the mergers and acquisitions trail for the past few years, buying up many of its rivals and becoming a competitor to stalwarts Browing Ferris, WMX, It's recent merger with Laidlaw will bring the company $90 M in cost savings.
Latin America is a potentially huge growth area. The company has a major stake in tidying up Mexico's heavly industrialized northern border area,.............and that spells big markets for Rollins."
"The company is relatively cheap, selling at only 1.2 book value, and .75 sales, which are growing at over 10% annually. With CalPERS prodding the stock has better days ahead. Buy Rollins under 4."
Rap comments:
they are under the industry price sales ratio of 2.14 which allows nice upside potential.
5yr EPS growth - 53.8, why. Leeb forecasts a - .16 for 1997 and then a strong return to profits in 1998 with 12% to 15% annual growth for the next 5 years.
Leeb lists a market cap of $181 M. I thought there were 30 M shares outstanding which would cap at $90 M???
So, is it a bit too early to buy now? Buying into low priced issues that just languish for a long period is frustating, however, REN appears to be a good long term play. Just don't know when it will begin gathering interest.
Rap |
