Tokyo Joe, have you been watching PDGE? Bid up from 1 1/4 to 1 9/16 since my recommendation on steady accumulation. Peaked yesterday at 1 3/4. Still tremendously undervalued considering sales and earnings.
Here's the DD, for those that missed it:
Profitable, fully reporting, OTC-BB company selling for $1 3/8.
Market cap of only $8.5 million, trailing 12 month sales of $33 million and trailing 12 mth eps of $0.21, giving it a PE of 6.5!. Current year eps projection is $0.30. Is starting to get some attention in the investment community. Current backlog of work
is $30 million. 1st qtr this year the company had $13.4 million in revenues vs. $4.5 million last year, eps $0.07 vs. $.02. Four consecutive quarters of increased revenues and earnings. To give you an idea of the legitimacy of this company, the company's auditors are Ernst & Young.
Formerly listed on Nasdaq Small-cap, was as high as $7, lost its listing a couple of years ago due to a string of losses and failure to meet market cap and minimum bid price requirements. Now it is restructured and turned its business around, just waiting for someone (like us) to re-discover it. Thinly traded, will move quickly with volume.
Here it is:
PDGE - PDG Environmental, Inc.
OTC-BB $1 1/4 - $1 3/8 (now 1 9/16 to 1 11/16)
Shares Outstanding (fully diluted) 8.2 million
Float: 3.5 million
Market Cap $8.5 million
Trailing 12 months Sales: $33,472,000
Trailing 12 months EPS: $0.21, Current P/E: 6.5
Current Year Projected EPS: $0.30
SEC Reporting Status - Fully Reporting
The sixth-largest asbestos abatement contractor in the U.S., PDGE
saw its stock price hit $7 in 1991, only to suffer from a string of losses which knocked the price down to as low as $0.375 in 1996. The company even lost its Nasdaq listing, failing to meet stockholders' equity and bid price requirements. But PDGE has restructured and turned its business around, reporting seven straight profitable quarters and four consecutive quarters of increasing revenues and profits.
For the fiscal year ended January 31, 1998, PDG Environmental earned $1,240,000 ($0.17 per share), a tremendous improvement over the loss of $184,000 ($0.04 per share) from continuing operations in the prior year. Revenues jumped 52% to $24.6 million. In the fiscal 1999 first quarter, which ended April 30, 1998, the company earned $561,000 ($0.07 per share), compared to $158,000 ($0.02 per share) in last
year's first quarter, a 255% increase. Revenues totaled $13,351,000, up 197% over the $4,489,000 from a year ago. Current estimates call for earnings between $0.26 and $0.30 this fiscal year. The stock currently trades at a P/E ratio of just 8.1 based on last year's earnings, 6.5 based on trailing 12 months earnings, and an incredibly low 4.6 based on this year's estimated earnings.
Over the last six months, PDG Environmental has added orders of over $21 million, pushing their current backlog to over $30 million. Also, their most recent contract, an asbestos removal project in Hollywood, FL, is the company's second joint effort with Phillip Services Corporation (NYSE:PHV) and lays the groundwork for further relationships between the two companies. PDGE holds a 60% ownership stake in PDG/Philip, L.P., a limited partnership formed with Philip Services Corporation. Rumors persist that PHV is interested in buying PDGE (CEO has sidestepped the question in interviews, CEO interview transcripts can be found links below).
PDGE also expects to relist with the Nasdaq Small Cap exchange by the end of the year, this will give the company greater exposure to the investment community. It has also received extensive newsletter coverage the last few months (see links below).
Company web page: pdge.com
Company's Auditors: Ernst & Young
Due Diligence sites:
Individual Investor writeup:
iionline.com
Stock Advisor Writeup:
stockadviser.com (includes transcripts of interviews with CEO
Growth Stock Investor Writeup:
growthstockinvestor.com
Small Cap Investor Writeup:
smallcapinvestor.com
All Stocks Writeup:
allstocks.com
Stock Chart (which is showing a bullish volume/price divergence):
tscn.com |
