Added some of this O&G servicer in the caspian sea today at .48. This is played one of 2 ways. Its either a trade on announced eps of .13 for Q4 per today's 10k filing or its a value play based on book value of about 1.00 a share and trailing 12 month eps of .08.
The .13 is a seasonal number so its not that meaningful in and of itself. The .08 is however they had a large contract for the year which may or may not be replaced in 2010. Either way with .50/share in cash on the balance sheet its hard to think its not worth more than .50 a share.
Also bought some MPAA recently at 5. That one is a potential value play seeking a 50%-60% gain if all goes well with some risks due to customer concentration. More on that later.
Tuesday, December 29, 2009
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