UFAB - oil drilling deck fabrication Message Board

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Gold/Mining/Energy : UFAB - oil drilling deck fabrication

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To: SargeK who wrote (279)	3/10/1999 7:13:00 PM
From: SargeK	Read Replies (2) of 337

UFAB Earnings And Projected Earnings Growth At 8 9/16 (todays close) UFAB is selling at only 6.3 times $1.35ttm earnings. The Company is forecast to earn $.40-1Q/00 and $1.95 for FY/00 (ending Mar2000). For verification see: biz.yahoo.com and quicken.com If accurate the projected earnings represent a 44.44% year over year increase. Further, the $.40 forecast for 1Q/00 leaves $1.55 remaining to be apportioned among the final 3 quarters or approx. $.52 per quarter to total FY/00 estimate of $1.95.. Further, the current P/E is less than ¼ of the S&P500 (28.5) and the Projected earnings growth over the next 5 years of 34.3% is almost 5 times the 7.2% growth forecast for the Index. As the year progresses and as the earnings become reality the P/E ratio will surely be elevated to reflect the future growth. If the earnings forecasts are on target the P/E should go to 10 to 14 times actual earnings. Using the most pessimistic assumption of a P/E 10, the target price should be a minimum of $19.50 by this time next year and the more optimistic assumption of P/E 14 would result in a share price of $27.30; a double or triple bagger in just one year. If the 34.3% projected earnings growth is correct the share price should double again by 2001-2002. Selling just above book and with strong technical support and with the sector and environment becoming increasingly more positive; the downside risk is minimal @ this juncture. I will attempt to keep this message board updated as events occur and as analysts ratings are adjusted - up or down. SargeK

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