Here's one that IMO has some long term potential and if word gets out about it, who knows what the short term will bring. I am working on one now that has some pretty awesome numbers including a float of under 1M.
6/29/98
SMID
Smith-Midland Corporation
540-349-3266
52wk hi/lo=$1.75/$0.563
Shares authorized (common-preferred authorized but none issued)=8,000,000
Shares issued=3,085,718
Shares outstanding=3,044,798
Shares held by insiders=1,055,663
Float shares=2,030,055
P/E: 8.03
Avg daily volume=11,500
Earnings+Sales+Cash (per share)=$4.48
Share price history: 1996 hi/lo=$6 17/32x$1
1997 hi/lo=$2 1/8x$3/4
Smith-Midland Corp is in the precast concrete structure business. The company started in 1960 and was co-founded by the current CEO Mr. Rodney I. Smith. The company manufactures the precast concrete items for the construction, utility, and transportation industries. The Company's operating strategy has involved producing innovative and proprietary products, including Slenderwall(TM), a patent-pending, lightweight, energy efficient concrete and steel exterior wall panel for use in building construction; J-JHooks(TM) Highway Safety Barrier, a patented, positive-connected highway safety barrier; Sierra Wall, a sound barrier primarily for roadside use; and Easi-Set(R) transportable concrete buildings, also patented.
In addition, the Company produces other generic highway sound barriers, utility vaults, farm products such as cattleguards, and water and feed troughs, and custom order precast concrete products with various architectural surfaces. The Company has entered into 22 licensing agreements in the United States, and has established at least one licensee in each of Puerto Rico, Canada, Belgium and Spain and sub-licensees in Portugal and Chile.
The major negative point with this company is the debt (but read the current news). The company is involved in the construction industry which means their products are typically provided and not paid for until 45-60 days after the product is delivered. Therefore, the company has to purchase all the materials, fab the product and deliver to site with funds out of their own pockets. I am intimately involved in the construction industry and can tell you as of this writing (6/29/98) that the construction industry is booming with a capital "B" all over the country including the North Eastern United States where this companies market is located.
Financials:
Profits: up $562,268 or 188%
1997 profits=$263,803 or .09/share
1996 profits=<$298,465> or <.10>/share
Revenues: up $594,387 or 5.2%
1997 revenues= $12,004,897
1996 revenues= $11,410,510
Royalty Revenues: up $23,456 or 9.8%
1997 Royalties=$262,257
1996 Royalties=$238,801
G/S/A expenses: down $440,215 or 19%
1997 OVHD expenses=$1,915,510
1996 OVHD expenses= $2,355,725
Debt:
Myers trust debt= $623,252
Riggs Bank debt=$935,000
Other debts & interest (approx)=$1,340,000
Recent News:
The company has restructured it's debt to help pay off old loans and update the production facilities. "Robert McElhinney, Smith-Midland VP - Finance - CFO, stated, ''This is only one step in strengthening the company. The new plant expansion and equipment will allow us to operate more profitably and the 40% reduction in monthly cash outlay for debt burden will free up capital for daily operations. Now we can concentrate on our five year plan for growth and profitability.''"
Chart:
quote.yahoo.com
Disclaimer:
There is no substitute for doing your own DD. This information is provided as a courtesy and should only be used to help yourself and others make a more informed decision about this equity. No promises of future performance are implied nor should be.
Sources:
Yahoo
SEC
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