I haven't posted much the last few days...in fact I need to do my weekend update...and now it is almost TUESDAY (yikes)....so here is another one for you to ponder!
Again, I came across this stock in the greatest percentage gainers today. This stock, Measurement Specialties (MSS), is on the AMEX...and is a smaller issue than some of the stocks we have examined before. Smaller issues tend to be quite volatile both on the upside and downside....especially with a small float.
By the way, I do not own any shares of MSS, nor do any members of my family.
Measurement Specialties closed today at $12.31 up $.98 or 8.65% on the day. According to the NYTimes on the web, Measurement Specialties is "...a designer and manufacturer of sensors and sensor-based consumer products." According to Yahoo, these products "...include pressure sensors, custom microstructures, accelerometers, tilt/angle sensors and displacement sensors for electronic, automotive, medical, military and industrial applications."
On August 7, 2003, MSS reported results for its first fiscal period ending 6/30/03. Net sales for the 3 months increased 9.8% to $26 million compared to $23.7 million for the same period in 2002. For the same period, net income was $3.7 million or $.29/diluted share compared to a net loss of $2.2 million or ($.18)/diluted share in 2002.
Morningstar.com shows a fairly history of revenue growth from $29.3 million in 1998, $37.6 million in 1999, $60.0 millio in 2000, $102 million in 2001, $132 million in 2002.
Free cash flow has just turned positive with ($10) million in 2001, ($8) million in 2002, $2 million in 2003 reported.
The assets and liabilities are fairly well balanced with $2.7 million in cash reported with $26.7 million in other current assets balanced against $23.6 million in current liabilities and $3.6 million in long-term liabilities.
Yahoo.com shows a tiny market cap of $140.0 million wiht 12.4 million shares outstanding and 10.7 million of them that float.
No cash dividend is paid. Due to prior losses, no significant p/e is reported. There is a HUGE short interest of 1.33 million shares representing 12.5% of the float or 55.54 days of average trading volume (!). This was as of 7/8/03 as reported on Yahoo.
Technically, the stock graph shows a steady, ascending curve...and looks quite strong (imho) although certainly not maintainable.
This is an interesting investment selection. I would rather see a longer period of positive earnings to allow a low p/e....also the small market cap may or may not be attractive to you. It certainly deserves your consideration!
Regards again...and thanks for stopping by!
Bob