Eyes on Ault(AULT): currently @ 8 1/8
This is my next pick that resembles very much my two other acquisitions
Eltron International(ELTN) and Equinox Systems(EQNX). The chart shows a
very solid triangle formation, with the peak of 16+ in May of 1996 and
a very solid base at 7, which has held steadily for over a year now. It's
nearly a perfect right triangle, which ELTN and EQNX both exhibited and
successfully broke out of. ELTN's on the run from 20 to 27+, and EQNX is
running too from 8+ to mid 10's.
The fundamentals are solid, with an average earnings growth rate of 100.3%
since mid 1994. Forward earnings projections call for 27.3% for the next
five quarters. At 8 1/8, AULT has a p/e of 15.0, showing that you are getting
one good bargain for the current price. For balance sheet figures according
to Baseline, debt is at 1%, price/sales is at .44, price/book is 2.6, price/
cash flow is 10.2, current ratio at 1.37, cash/share is $0.20. By the way,
I forgot to mention that AULT is mentioned in Business Week's 100 top growth
companies, with a ranking of 98.
The chart has broken out of its triangle and appears to have strong support,
and didn't waver in today's wild market swings. I'll be adding this to my
portfolio as of Monday, with a conservative target price of 13 1/2, or a 66.2%
premium above today's close. Two brokers cover this, with a Zack's ranking of
1.5, which is composed of 1 Strong Buy and 1 Moderate Buy.
To Mike and Doug: have a great weekend.
Regards,
Rainier |
