Thanks for opening a thread on this stock. Very interesting analysis at Briefing.com on UFAB. I think this stock can easily go to $40, given the amount of enthusiasm for this sector. Usually Briefing is pretty conservative with their analysis.
Following are the Briefing comments.
13:05 ET ******
UNIFAB INTERNATIONAL INC (UFAB) 30 +12. Shares of this New Iberia, LA-based drilling equipment company
have come to market with a bang, soaring 70% above their initial public offering price. Investors did not mind that
lead-underwriter Morgan Keegan & Co. raised the price of the 2.8 million share offering from the initial range of $14-$16 a
share, as demand for stocks in this sector is simply off the charts. Specifically, Unifab is engaged in the custom fabrication of
decks and modules of drilling and production equipment weighing up to 3,500 tons for offshore oil and gas platforms. Decks
and modules fabricated by the company can be installed on fixed and floating platforms regardless of water depth. So how
does this deal measure up to recent offerings from the same industry? The following is a comparison of UFAB numbers
versus those of another high-flying recent IPO, Fried Goldman Intl (FGII 56 +4 3/4), a provider of conversion, retrofit
and repair services for offshore drilling rigs that came to market in July at $17 a share. For the most recent fiscal year, UFAB
logged revenues of $66.72 mln vs FGII's $21.76 million. Over the same period, UFAB produced earnings of $1.02 a share vs
FGII's $0.24 a share. On a trailing earnings basis, UFAB shares carry a multiple of 29.9 vs the multiple of 233x trailing
earnings currently awarded FGII. On a sales basis, UFAB trades at a measly 1.28x trailing top-line, compared to the 4.74x
revenues FGII trades. Summed up, if you're looking to ride the wave of robust earnings growth and soaring stock prices that
are now common place in this sector, Unifab International is an excellent place to get on board. |
