MB, 4-5 bagger!? LEIX, Lowrance Electronics sells sonar and global positioning systems. As known, this market is growing. LEIX board members recently purchased 1.5 million shares last December. Current market cap is only about 24 million dollars, with approximately 3 million shares outstanding. Current revenues are over 100 million dollars, and projected to increase to over 120 million in 1998.
Margins are now improving, as their move to Mexico, and the cessation of recent price protection policies. Expenses are under control, at about 24 million per year. Margins for the year should approach 28%. Operating income is expected to exceed 9 million dollars, and net income, with the utilization of some NOL credits should be around 7.5
million dollars or $2.50 per share. Pick a multiple, and you see the value here. PE of 16 = $40. The stock could surge even more as it is a thinly traded stock.
I believe this to be a value and takeover play. JMO.
Good Trading, LF |
