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Thursday, 23 October 2003
October 23, 2003 SM&A (WINS)
WHERE do I keep finding these companies? lol. Really, it is quite mechanical, just scan the top percentage gainers, emphasize stocks over $10, look at latest quarter, Morningstar.com....and there you have it! Remember, I cannot emphasize enough, I want all of you who read these posts to discuss these ideas with your own professional investment advisor before acting on them!

Anyhow, enough with the lecture, SM&A (WINS) is "...a provider of competition management services, business consulting and program services." They came out with earnings today before the stock opened and even though the rest of the market is down, WINS is up strong. Currently, WINS is trading at $13.248, up $1.218 or 10.12%.

Today, as reported on Yahoo.com from BUSINESS WIRE, WINS reported their third quarter results for the period ended September 30, 2003. Revenue for the quarter was $18.7 million, an increase of 31% over the same period last year. Net income was $2.9 million or $.13/share, an increase of 78% from last year's results.

Morningstar.com shows two different revenue growth patterns. Looking at the "10-Yr Income" tab, we find revenue increasing between 1995 and 2000 and then dropping off significantly to 2001. However, since 2001, things have been looking much better again. Revenue has grown from $39.6 million to $66.4 million in the trailing twelve months.

Earnings have grown from $.25/share in 1999 to $.51 in trailing twelve months. Free cash flow is positive at $3 million in 2000, improving to $8 million in trailing twelve months.

Balance sheet is solit with $10.7 million in cash vs. $9.2 million in current liabilities and only $300,000 in long-term debt. In addition, Morningstar reports an additional $14.4 million in other current assets.

Yahoo.com shows Market Cap of $264.0 million. P/E reasonable at 20.05 with PEG ratio of 1.76, Price/sales at 3.64. There are 20.10 million shares outstanding with 13.4 million that float. There are 210,000 shares out short as of 9/8/03. Due to low trading volume, this represents 2.561 days of average trading.

This company is very interesting and may be worth your consideration. I do not own any shares. Before making any purchases based on information from this site however, please consult with your financial advisor! Thanks for stopping by.

Bob


Posted by bobsadviceforstocks at 12:14 PM CDT | Post Comment | Permalink

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