January 28, 2007
SpeculatingStocks.com Stock Pick: Universal Power Group, Inc. (UPG)
Stock Price: $6.42 (long-term strong buy)
Universal Power Group, Inc. is a provider of third-party logistics and supply chain management services, and a distributor of batteries, security products and related portable power products to various industries. The company's range of product offerings include proprietary brands of industrial and consumer batteries of all chemistries, chargers, related portable power products, 12-volt DC accessories, security products, and others.
UPG went public just over one month ago on December 21st, pricing in three million shares at $7.00 per share. The company is receiving $13.02 million in proceeds from the offering.
UPG's value has yet to be priced in by the market. UPG is trading at a market cap of only $32.10 million. The company generated revenue of $68.02 million for the nine months ended September 30, 2006 and net income of 1.28 million.
With IPO proceeds factored into shareholder's equity, UPG has a book value of $3.49 per share.
There are only 5 million UPG shares outstanding.
SpeculatingStocks.com Target Price: We expect UPG to reach $12.00 within the next 2 - 4 months.