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Strategies & Market Trends : Value Investing

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From: MikeS97707	5/26/2011 11:26:46 PM
	Read Replies (3) of 78671

ASTC IMO has great odds of being a multi-bagger and is my largest position. Here are reasons that I like ASTC: 1. ASTC has two divisions including the Astrotech Space Operations (ASO) and Spacetech. ASO provides satellite launch processing services. Spacetech is an incubator intended to develop space-industry technologies into commercial applications. ASO is quite profitable but Spacetech isn't. ASO made $0.35/share last year yet the stock last traded at $1.07. To get the proper valuation for this company, IMO you need to value it as two separate companies first rather than just look at the bottom line. I think that ASO is worth $4 today based upon EPS of $0.35/share last year and is worth even more in the future. I'm not sure what value to give to Spacetech but even if you give that a value of zero, ASTC is massively undervalued. 2. The huge $16.2M contract that they just got should move overall profitability of ASTC to roughly the $0.30 level in fiscal 2012. That implies ASO earnings will be in the $0.65/share ballpark! siliconinvestor.com Note that as revenue rises their margins generally go up. Also, per their filings, fixed-price contracts typically have higher margins. 3. Book value is $2.04/share and cash is $0.39/share. ASTC is trading for roughly 1/2 of BV! 4. The CFO just purchased 20,000 shares in the open market on 5/17/2010 at $0.97/share. secform4.com 5. According to a yahoo poster, 1st Detect, a part of Spacetech is going to commercialize one of their products in late Q4 2011 or early Q1 2012. siliconinvestor.com

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