FWIW-SA still thinks it's a value. I'm currently not looking to add more, but I still continue to hold.
Q.E.P. Co., Inc. ( QEPC.PK)
QEPC is a manufacturer and seller of a product line of specialty tools and flooring-related products for home improvement. For the year, the stock has gained 49.16%. Despite outperforming the market, the stock still remains undervalued. The reason is that it is relatively illiquid and trades on pink sheets. Its current business does not appeal to investors looking for exciting growth industries. The 5-year revenue growth rate appears low at 2.89%, as the revenues declined during the financial crisis. However, it has managed to post earnings per share growth of 59% over the same period. The reason is the company has been buying back shares in the market while keeping their capital spending at low levels.
The stock is currently trading at 6.21 times trailing earnings, lower than The L.S. Starrett Company's ( SCX) 17.21 times earnings and Snap-On, Inc. ( SNA), valued at 12.38 times earnings. It looks like the market is not yet convinced that it could post modest growth in the coming years. At first glance, investors would be worried at the performance of the housing market. Despite a sluggish housing market this year, QEPC has posted revenue growth of 13.60% year on year. With a market cap of $69.67 million, it would be a good steal for a company looking to expand its portfolio of home improvement products.
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