ARCI website appliancesmart.com
Very nice. At $1, ARCI is trading for:
-->less than 2 times book
-->0.14 times sales or less
-->1-2 times forward EPS on strong growth and margin expansion
CY2000 looks like the year when ARCI will finally leave penny stock land, and after trailing EPS is clearly $0.50 and heading higher, trade for $5 consistently.
A new recycling contract and stronger-than-expected retail sales growth adds upside.
Also keep in mind ARCI spent $100,000 in Q3, and again in Q4 (it seems, according to June Q 10-Q mention of $200,000 Y2K remediation still expected in Q3,Q4). That means Q3 SGA would have been $100,000 lower, and Q3 EPS $0.04 higher. Add in $74,000 one-time settlement payout charged to SGA, and you have Q3 adjusted net income of $706,000, or $0.31 EPS on 2,271,000 shares, or 2,291,000 shares after 20,000 settlement issuance. That means ARCI is trading for 3 times EPS on one quarter ALONE.
PEG(e) ratio looks like 0.03. That's right, ARCI looks like it's trading for 1-2 times forward EPS which looks like it'll grow 50%+ vs 1999 Q's.
The best bargain I've ever seen, except for KIDE at $3 a year ago, which was also at 1 times forward EPS.
I'd be scooping while the scooping's good. Another few quarters of solid profits, and $1-2 will be history, IMO. |
