APL.V new position

Bought a token position friday in this canadian provider and servicer of centrifuges and other equip. Purchase price was .24/share.

This looks like a short term earnings play with a solid balance sheet that should put the floor under the price. At .24 the stock is trading at around book value but the company also earned .016 last quarter.

They have seen a substantial increase in product orders in fiscal 07. Of their 2.5 million in orders they have delivered 1.2 million. If I am reading this correctly they are implying they expect to fill an additional 1.3 million in Q4. That would roughly double their product sales and could generate EPS of .03 a share.

Here is the relevant quote from their last earnings release

"Firm machine sales for fiscal 2007 now exceed $2.5 million, of which only $1.2 million have been recorded to September 30, 2007. Combined with expected increases in parts revenues, Appulse management looks forward to a further increase in revenues and earnings in the final quarter of 2007."

I have to think it will look undervalued to someone when the next report comes out. It is thinly traded but with a good balance sheet underlying the stock and a whopper of a quarter coming up I think it was worth a small position.