When Todd first told me he was going to be the IR for both companies I thought SAH may be getting ready to buy out APCO. Not an impossible situation! But, he assured me that is not the case. He says Larry Dorfman actually set this thing up, he feels the long term relationship between APCO and SAH could benefit. So, Todd is located in APCO's office, but is doing the IR work for both companies. I didn't want to pry too much into personnel business, but I did ask if he is being paid by both companies and he affirmed that was the case. So, he is employed by both APCO and SAH. Brings to mind an old comedy where the little town has a Mayor, Sheriff, and Judge, but they are all the same guy!
SAH will report earnings before the bell on Monday, projected to do $.86 for the year, giving it a PE of 13.3, pretty under valued in my opinion. Todd has always done a great job for APCO, I have the feeling he will help a lot in driving the price of SAH up to a reasonable PE. So, what is a reasonable PE?
I can only guess, but with the kind of growth I see here, a PE of in the neighborhood of 25 seems about right. That is a guess and I don't have a time table for that.
Yes, I feel SAH and APCO are an exciting combination. Todd said they are going to do a conference call for SAH, probably Tuesday. It will be their first one. I can't invite you to participate, but if you call Todd at 1-888-766-4218 I would bet you he will.
See ya,
Jack
jack@jackm.com
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