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Released on Friday, November 4, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) -Well it’s getting to be that time of year. Shopping malls are readying designs for this year’s Santa Claus exhibit; little children are begging for that now mint condition super-hero just released in stores; and husbands are buying honey-I-love-you presents for their loved ones.
What does this have to do with the stock market? Besides the fact that you might have to sell some stocks to pay for that new necklace she’s been eyeing, it also usually means profits! Nice big quarterly profits, and play your cards right they will boost yours too.
Gaming Partners International Corporation (NASDAQ:GPIC) just happens to be one of those companies you will want to be investigating this holiday season. GPIC has a market capitalization of around $54 million, so it’s fairly small to be certain, but it also has an enterprise value of $24 million, so it’s got some nice hard-equity and cash built into its leveraged position.
Gaming Partners was most recently trading at $6.68 per share (4:00 PM EDT, November 3rd, 2011) and has a P/E around 12.61 which is fairly average for a growth stock in a near recession economy. GPIC’s EPS is $0.53 per share; however, the company also releases a dividend once a year in early December to the tune of $0.18—at the stock’s current price you could buy and sell before and after the dividend record dates, and simply make a profit from that move alone. The stock is also fairly resistant to market swings, holding a volatility beta of 0.71.
Gaming Partners has a current ratio of 3.21 and only about 40,000 dollars in debt, which is outstanding for a company with a multi-million dollar market cap. The firm also has about $3.31 per share in cash, so it is extremely solvent. Profitability looks good with over a 10% ROE and Operating Margin.
In the short run, MACD and Fast stochastic indicators are showing a bullish divergence for this stock over the past few days. So all things considered, this is a fairly well positioned stock, make sure you are sitting as comfortable coming into this holiday season!
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