ERCI Info from Dave C.
ERC Industries, Inc is an oilfield service company which
manufactures, remanufactures and services oilfield wellhead
equipment. For the 9 months ended 9/30/96, revenues
increased 43.50% to 13,304,000 compared with 9,271,000.
BOTTOM LINE: Increased drilling activity will translate into
improved profits for ERCI which provides services to the
industry.
FACTS:
1) Insiders have been agressively buying company stock. Here
is the latest information reported from Strategic Investor
reports dated 11/25/96:
12,034,000 shares bought the last 26 weeks
0 shares sold
* Breakdown of Insider purchases as reported by Thomson
Marketedge:
* John Wood Group PLC - bought 591,000 at 1.30
John Wood Group PLC - bought 865,000 at 1.30
John Wood Group PLC - bought 1,164,000 at 1.30
2) Revenue Growth has been picking up at a rapid pace:
QTR 96 95 % change
Mar 9,828,000 7,920,000 Up 24.09
Jun 11,817,000 8,523,000 Up 38.65
Seo 13,304,000 9,126,000 Up 45.78
3) Price Ratios Are Favorable
Price Ratios Company Industry
Pr/Sales .69 3.46
Pr/Book 2.58 4.23
4) Financial Ratios are Positive
Debt/Equity .15 .43
LTD/Equity .14 .36
Company Industry
Current Ratio 2.61 1.99
Target Price - Next few days/weeks - $ 4 or more
Target Price - Next 10 months - $ 10 or more
Dave Cook |
