E,
Additional comment on JWC.
Listed 34th Forbes best managed companies in US.
Over the last 5 years:
Rev growth of 222%
Earnings growth of 178%
EPS growth of 405%. Over 80% per year average EPS growth!!
BV over $6.00/S, Cash over $3.50/S
It's now selling at 1.8 BV, PE of 7.4, 3.24 x cash
They have historically managed cash extremely well. End of September they acquired AGRO for shares, adding $4.8M cash to reserves. Doing this at that time, they diluted earnings 10%, but had not been able to put the cash to work. They got control of the cash just before the market fell and have been investing it. All indications are that they will not only continue growth, but at a faster rate than in past.
In addition to this, they are prime for acquisition or quality merger and it's likely they will declare a stock dividend within 6 months.
Compared to other similar companies in the brokerage sector, they are undervalued. Considering their historical growth, a real bargain.
Last Q they reported .62 EPS. It is very likely they can have '98 calendar earnings of at least $2.50 or 4.6 PE to current price.
Price ran up due to an article in some magazine (forget which) and there's now some selloff for taxes. There will be renewed interest in it early next year and we now have a good buy opportunity.
For what it's worth,
Ron |
