July 5, 2006
SpeculatingStocks.com Stock Pick: Electro-Sensors, Inc. (ELSE)
Stock Price: $4.59 (short-term strong buy)
Electro-Sensors, Inc. is engaged in two business lines, (i) the manufacture and distribution of electronic instruments used to monitor shaft speeds in production lines and precision motor controllers, (ii) the development and distribution of desktop software for designing scannable forms, such as customer surveys and automated data collection using scanners for forms processing through its AutoData Systems division.
The company reported revenue last year of $4.90 million with net income of $761,000. ELSE is currently trading at a PE of just under 10 and a market cap of only $15.34 million.
ELSE has a solid balance sheet with assets exceeding liabilities by a margin of nearly 6 to 1. ELSE has a book value of $4.10.
ELSE has the potential to move higher quickly just like NGA did. There are only 1.5 million ELSE shares in the float and 3.34 million outstanding. ELSE has a 52-week high of $11.55 and is just now beginning to break out again.
SpeculatingStocks.com Target Price: We expect ELSE to reach $6.00 within the next 15 - 30 days.