http://gmcstockpicks.com Proprietary algorithms at work. Click here for our free newsletter: http://goo.gl/APYNVJ . This is a review of an undervalued stock in the Basic Materials Sector and Maching Tools & Accessorites Industry. Low priced stocks to buy. We do not look at penny stocks. Stock options are a safer bet than penny stocks.
Like us on Facebook: https://www.facebook.com/gmconner14
Follow us on Twitter: https://twitter.com/gmcstockpicks
Add us to your circles on Google Plus: https://plus.google.com/u/0/+Gmcstockpicks/posts
Subscribe to our podcast on iTunes: https://itunes.apple.com/us/podcast/value-momentum-gmc-stock-picks/id737369520?mt=2
Listen and subscribe to our podcast on Stitcher Radio: http://www.stitcher.com/podcast/value-momentum-gmc-stock-picks?refid=stpr
0:01
Everyone Mathis Conner here with Conner management group and this week we're going to look at
0:06
the base the best basic material stock to buy today is Thursday, January 30, 2014 and
0:16
as we can see from the opening slide the stock to talk about this in the machine tools and
0:23
accessories industry and we see this company's had a 12 month upside potential 30.4% on the
0:34
the name of his company's call in a Incorporated I myself I had heard company before it's no
0:44
not a very large company and the name of the company is literally and now noninfringement
0:52
is double and during this presentation ticker symbol is an NPR I was skinny industries in
0:59
the machine tools and accessories industry we see it upside potential and 30.4% some
1:07
quick facts going to Korea engages in the manufacture and sale of metal bearings plastic
1:16
and rubber precision metal components were very dairy manufacturers worldwide and operates
1:22
in three segments middle components plastic and rubber components and precision metal
1:29
components another description we adhere is an in manufactures and supplies high precision
1:38
bearing components of leading bearing automotive and industrial manufactures on a global basis
1:46
is divided into three operating segments mailbag components worried get 68% of its sales precision
1:56
metal components lyricist 21% of sales and the remainder the plastic and rubber components
2:03
were received 11% of its sales so the disaster at basic materials company and a provide a
2:11
lot of that just basic malware plastic and in unguarded coupons to lots of different
2:18
kinds machines the website for Dublin is an anti-PR.com best triple-double you got an
2:27
NPR.com the headquarters for an in is Johnson City Tennessee it were founded in 1980 and
2:36
number employees they have are 1781 industrial goods is the sector of the operating within
2:47
and the industry the operate within this machine tools and accessories of the supercenter is
2:55
basic materials of the general sectors industrial goods and the industry is machine tools accessories
3:02
the annual revenue last 12 months for an end was $363 million net income was 21 million
3:11
and cash from operation last 12 months was $40 million and the market capitalization
3:17
for an and is only $379 so the scummy's most smaller and what we looked at in the past
3:26
but they been around for a number of years and we can visit this is a good opportunity
3:34
to the products and services page we have some pictures of the kinds of the things that
3:40
they do placebos of pictures here are some windmills in the background of this says fees
3:48
are friendly providing components for wind power is some picture out so machine cylindrical
3:56
components of different geometries is decision metal components meeting the strictest specification
4:03
is a picture here of the plastic cover of my has some radiator type extends to it since
4:12
plastic and rubber parts any application shows a three states and rehab here there is a few
4:19
more pictures of the same military components precision out components and plastic and rubber
4:26
components as well taking a look at some of their metrics now as he mentioned annual revenues
4:35
last 12 months for an end was $363 million the net income was $21 million and the cash
4:42
from operations was $49 on to the operating margins for 2012 and is operating margins
4:51
were 11.8% and they expanded nicely I force over 2013 attracted to be 14% so that associate
5:03
a nice less than the city the trailing P/E ratio was 14.4 is 14.9 the forward P/E ratio
5:15
is 13.8 so that that's the right trend see and while .2 .900 13.8 is and is in a
5:27
huge drop implying a large increase an and earnings however that that trend combined
5:38
with an expectation improving margins can create a nice opportunity the other valuation
5:46
metrics the paid ratio of 1.1 not not outline the statistic prices sales ratios of 0.9 also
5:56
picture to suggest some important the price of books at 2.2 and that enterprise value
6:04
to either.is slowly it 8.2 so by Mark the value met the valuation metrics are not expensive
6:15
at all client by any means the recent closing price or today's closing price for and it
6:21
was $18.19 52-week low. It's been $8.32 and it 52-week high. Was $21.42 so the recent
6:34
closing prices doubling closer to the high than the low and we can see that the stock
6:41
has appreciated quite a bit over the past year and we still see quite a bit of outside
6:49
as well so the 20 day moving average was $19.09 the 50 day moving averages $19.40 and it 20
6:59
day moving average is $14.41 so overall that the pretty good trend that the 20 day moving
7:07
average is at next also nine cents is the logo below the 50 day moving averages $19.40
7:15
and minutes that's in line with the market going through its recent pullback of the past
7:20
month so overall as will see about price trend chart that the stock has been a year so the
7:29
average volume for an the average of the trailing by as and when I thousand shares so it is
7:36
not heavily traded stock but we solely considered near nearly liquid written: a very liquid
7:44
stock gold meeting here with the beta for the stock tip 3.7 so this the stock has historically
7:54
of zero point easily and readily when compared to the stock market in general and eight no
8:05
one really mindset when the stock is going to take a strong stomach but they do that
8:12
high wasů That's a short service of the state stock dividend yield for the stock is 0% of
8:21
the stock is only start pay dividends last to three quarters so we will just say the
8:27
average dividend is consumer and the average dividend payout ratio for 2013 has been 17%
8:37
taking a look at and ends price chart will see that back and late February the stock
8:46
started out the year of the little over eight dollars and is just steadily moved up we see
8:56
a high of around $21 OSC in late December and its pullback to read $18 and today were
9:11
red is so the stock is clearly it steadily moved up in price reflecting improving margins
9:22
and a number of steps that manages taken to improve the business's overall financial statement
9:30
quality and its fair you know the company historically has been has had quite a bit
9:39
debt but they been taking some steps to to improve that ants of the steps there reflects
9:46
their improving margins so be discontinued operations in some minds of low-margin businesses
9:54
and the they focus more the higher-margin businesses at and proceeded back and that's
10:00
what's been driving the increase the stock price over the past year so they debt they
10:07
also reduce the debt of the past year as well so the other financial statement quality is
10:14
fair but is this looks pretty promising that is going live improve of over the next year
10:20
the left let's see the annual sales rate for the past five years it's only averaged 1%
10:28
per year over the past five years of his expectation that sales are the next Celtics some some
10:36
more so sales of increasing that strip unit only increase since 2012 through today and
10:45
earnings are expected to increase as well so that sits of exclusive Karen and we believe
10:57
that it's it's it's the stories improving it to stop to take a closer look at as we
11:03
mentioned the operating market trend is improving price pattern trend it's on increase overall
11:11
market Outlook is still filled is bearish some names are starting to experience pullbacks
11:19
in the middle earnings seasons right now were with what we getting little mini corrections
11:26
across different names the market is as we speak the recent closing price trend in was
11:34
$18.19 today are 12 month price target dividend is 23 also $.72 so that is a 12 month appreciation
11:44
potential of 3.4% and in you know me not one of these household names unique you care about
11:54
the than the numbers that spoke the price action and to speak for itself people are
12:01
hearing about this is company owns a small company but we we feel it has a solid story
12:07
it's worth the exploring antics is a look at so that's what we have for this week and
12:16
and if you haven't already signed up for our newsletter please do some you can do that
12:22
by going to www.GMCstockpicks.com and you be among the first to hear that timely investment
12:29
opportunities such this one and this up spinous opportunities a reflection of using our self
12:36
developed proprietary algorithm that review over 3500 stocks every week we analyze and
12:44
rank stocks as far as appreciation potential so good to our website and sign up to share
12:53
share newsletter love the know about it and that's all we got this week to take your talkies
13:00
and