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IEC lives to server other manufacturers |
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and designers of metal and tech. |
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Released on Monday, October 24, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - IEC Electronics Corporation (AMEX:IEC) manufactures electronic prototypes for manufacturers, yes you may re-read that sentence. This company manufactures prototypes, as well as assembly productions, circuit boards, wire-harness assemblies, and so much more.
IEC has been around for a few years now, but has been rather quiet in its full market deployment, partly because it lives only to serve other manufacturers and designers of metal and technological equipment. But recently the company has been make more and more headlines as it excels in civil work as well as profits.
On September 22nd, 2011 the IEC announced that it won a contract to manufacture 6.7 million dollars’ worth of parts. Now $6.7 million doesn’t necessarily seem like a whole lot to go around, however, for a company who takes in about $30 to $35 million on a quarterly basis, $6.7 million over two quarters even is more than a drop in the bucket, in fact it would represent approximately a 10% gain in revenue.
Now what does that mean for the potential investor? Well it spells out to be a small increase to earnings per share which will largely depend on the firms cost allocation and whether or not they will increase fixed cost or not to meet the deal, but even a small increase to EPS can be a great gain on a stock that is currently selling for $5.47 a share (4:00 PM EDT, October 21st, 2011).
Let’s look at what else the stock has to offer. An over-all EPS of $0.58 per share, and a price that is 9.36 times earnings. A small market capitalization of around $53 million makes the company a nano-cap.—also IEC has an enterprise value of $95 million, which means that the market cap is lower, indicating an undervalued position, the two should ideally be closer.
Both the MACD and Fast stochastic show a bullish divergence currently in this stock, but be careful as the Relative Strength Index shows that the stock is nearing 70% in strength, so possibly soon to be over-bought.
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