I went on a search
for small value based companies with an improving capital structures coupled
with a depressed stock return versus their industry peers along with an above
average recent amount spent on capital expenditures .
The thought was
those recent (TTM) above average capital expenditures could be an indication of
management’s confidence of improved business activity. These ideas look interesting
Zoltek Companies
Inc. (ZOLT)
Industry = Industrial
Electrical Equipment
52 week return = -45%
Market Cap: 299.02M , Enterprise Value:123.41M
Price/Book:1.06 , Enterprise Value/Revenue: 0.69, Enterprise
Value/EBITDA: 5.16
52 week return = -45%
Slight share count reduction from 2008 year end balance
Capital expenditures
were 21.6M for 2012 versus 2011 8.01M and 2010 4.06
Market Cap:
258.04M,Enterprise Value: 247.24M
Price/Book : 0.79
, Enterprise Value/Revenue: 1.41, Enterprise
Value/EBITDA : 6.31
Historically cheap
based on P/S and P/B
GM% has improved
to 24.5% from 11.70%, 10.30% and 22.1% for the years ending 2011, 2010 and 2009
respectively.
Strong insider
purchases for 2012
negatives:
negatives:
Change in Revenue
YOY was -23.70%
Shares as a percentage of the float = 21%
but trading as it trades near the 52 week low it could be a short squeeze candidate or just stronger that expected short term demand for the stock
Shares as a percentage of the float = 21%
but trading as it trades near the 52 week low it could be a short squeeze candidate or just stronger that expected short term demand for the stock
Two other possible ideas
Oplink
Communications, Inc. (OPLK)
Industry = Semiconductors
52 week return = -16%
Strong historical gross margins at 33%, steadily increasing book value over years, share count reduction from a 2008 year end balance of 20.589M to the current 19.145M. modest YOY revenue growth at 3% after 43% in 2011. 52 week price stock return of -16%, cash per share of 8.71 and a quick ratio of 8.91
The stock is held by value institutions like Royce, Kennedy Capital,Robeco
Industry = Semiconductors
52 week return = -16%
Strong historical gross margins at 33%, steadily increasing book value over years, share count reduction from a 2008 year end balance of 20.589M to the current 19.145M. modest YOY revenue growth at 3% after 43% in 2011. 52 week price stock return of -16%, cash per share of 8.71 and a quick ratio of 8.91
The stock is held by value institutions like Royce, Kennedy Capital,Robeco
Market Cap: 84.23M,
Enterprise Value : 151.08M
Price/Book: 0.64 ,
Enterprise Value/Revenue: 0.40, Enterprise
Value/EBITDA 3.74
Share count reduction from 2008 balance of 9.683M to current 8.724M
YOY revenue growth of 6.30%
