Another stock I'm curently bullish on is. . . NVIC. Also, PE is less than half the industry average.
N-Viro International is a rapidly growing company, listed on the Nasdaq exchange, Small-Cap. It is traded under the symbol: NVIC.
Toledo, Ohio based N-Viro International Corpration (per its Mission statement) is a "publically owned technology firm, developing patented processes and pioneering in the conversion of bio-organic and mineral waste into the safest soil fertility products." To put it in simpler terms, N-Viro owns and licenses facilities that process sewer sludge in municipalities and animal waste in factory farms. The waste is processed into a value added product "N-Viro Soil." The company's largest operations are in Middlesex County - New Jersey, Wilmington - Delaware, Syracuse - New York, Toledo - Ohio, Phillipsburg - New Jersey, Minneapolis - Minnesota, East Hyde - United Kingdom, Tomball - Texas, and Greenville - South Carolina.
N-Viro is in a very hot and profitable business. The federal government has passed legislation in recent years concerning sewer sludge and factory farm animal waste. After all, 40% of the nation's waterways assessed by states still do not meet water quality goals. Currently, the EPA is beginning to crack-down on offenders of this legislation. For fiscal year 1999, President Clinton proposes a 35% spending increase to support the Clean Water Action Plan.
N-Viro has the best solution to sewer and animal waste projects. . you don't have to take my word for it or the company's word for it. Ask Uncle Sam. The United States government, with their USDA, has recently given N-Viro a $500,000 grant to build a processing plant outside of Washington. Construction begins next week and will be completed by August 1.
In another exciting development, N-Viro will begin processing 25% of New York City's sludge, beginning next week. This is part of a 15-year, $100 million contract that N-Viro has with New York.
For further information on the company's business, one can visit their website at www.nviro.com, or contact the company at 1-800-66N-VIRO. Much information is also available in past press releases and in SEC filings.
Now that some of the company's background has been established, I'd like to touch on some company fundamentals:
*Roughly 2.5 million shares outstanding, with 1 million in the float (most of the company is insider owned).
*Net income is increasing drastically. 1997 was their first profitable year of business, earning .23/share (after a loss of .09/share in 1996, and greater losses in previous years). In my conversation with CEO and Chairman of the Board J. Patrick Nicholson today, he stated that the company estimates net income of .40 for 1998, on revenue growth of 15-25%. The second quarter is expected to have net income of about .07 or .08 per share. Third and Fourth quarters should be considerably higher. (Revenue and income is variable due to the timing of licnesing/royalty fees, etc.)
In addition, the CEO stated that the company is currently drastically undervalued. Therefore, some major brokerage promotional work is being started. Brokerages have begun to accumulate, and this will be accelerated in upcoming days/weeks.
NVIC appears to have a very bright future, but as always please do your own DD. I'll be happy to attempt to answer any questions you may have, otherwise contact the number and website listed above. |
