Jake, here is my promised answer to whay I like AGX so much.
first of all, I am long 51,000 shares with an average price of 7.30, so, obviously, I am wildly bullish as it climbs over 9.00
and everything I say now, has to be understood as "talking my position"
that having been said,
this was a small, unknown OTCBB company until a few weeks ago, where as you know, analyst converage does not exist.
you will notice that while on the BB, there was NO HYPE, no PR, no nothing.
in Oct 2006, they acquired a manufacturer of bio-diesel and ethanol power plants, for $11,250,000 in cash, and $11,250,000 in stock, at the time of $3.75 per share. Clearly the sellers have now more than doubled their return in the stock, all the while, not selling any shares, and all the while as the stock climbs quietly and slowly, without anaylst coverage.
Because there hasnt been a BUY recommendation on it, there is only a handful of people, including myself, who are even aware they exist. the recent move to AMEX will expand that number, but with all the turmoil and opportunity, the last few weeks in the markets overall, no one noticed AGX.
AGX just released their last Q, and in it they went from $33 million in cash, to $49,000,000 in cash, which, at 11,000,000 shares out, is about $4.50 a share in cash,
so, at $9.00 per share, the market is only asking for $4.50 a share for thei rbusiness which is pushing over $200,000,000 in revenue, with a $200,000,000 backlog?
As much as I like, LOVE in fact RIO, and the money I made in it the last two years (it would have been more if i just bought and held),
the return in AGX, should be well over $1,000,000.
I base that on 51,000 shares selling for $28.00 per share.
I started a thread for AGX here, Subject 57265
but, I doubt anyone will post there until the stock is at $18.00 and receives its first anaylst BUy recommendation.
RIO didnt become a BUY at Citi until it was at $60!!!! (adj for the split) so, you see what I think of analysts! |
