From Briefing.com:
UNIFAB INTERNATIONAL (UFAB) 16 7/8 +1 5/8. Investors are finally
starting to recognize how truly oversold Unifab shares were, and still
are. In fact, this is one of the cheapest stocks in the entire oilfield
services group. Over the past week, however, the stock has started to
break out of slump that sent the shares spiraling lower, almost without
pause, from $40 to $13 a share. The horrific performance of the stock
over the past 4 months is attributable to a combination of over-eager
IPO investors and the general downturn in the oilfield drilling/services
group. After debuting back in September at $18 a share, the stock roared
through the $40 mark in a matter of days, as momentum players jumped
aboard any and everything that was oilfield related. When the music
stopped for the group in the 4th qtr of 1997, UFAB and its buddies were
left without chairs. After experiencing numerous stops and starts, the
group has done an excellent job holding its gains over the past week.
When these types of moves occurs, 2nd-tier names such as UFAB benefit
from trickle-down economics, as investors race to find the attractively
price stocks that may have been left out of the move. The renewal of
bullishness has helped UFAB shares climb more than 30% over the past
week. But if thinking about buying Unifab, or any other stock in this
area, you had better look at the charts of some of these babies.
Although almost everyone on Wall Street is bullish on this group, mutual
funds, hedge fund managers, and individual investors alike will dump
these stocks in a heartbeat at the first sign of trouble.
Description: Unifab is engaged in the custom fabrication of decks and
modules of drilling and production equipment and other structures used
in the development and production of oil and gas reserves. In addition,
the company refurbishes and retrofits existing jackets and decks and
performs offshore piping hook-up and platform maintenance services.
Fundamentals:
Earnings Estimate: 1998= $1.23; 1999= $1.43 (+16%) Price/Earnings
Ratio: 1998= 14; 1999= 12 (PEG 0.52) Forecast For Long-term Growth:
Low= 20%; High= 25%; Mean= 23% |
