OTCPK:EUCTF - Post by User
Comment by
shawshankon May 25, 2015 3:18pm
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Post# 23761825
RE:RE:EUO article - price target $0.30
RE:RE:EUO article - price target $0.30Monday, 25 May 2015
A Quick Note On a Recently Profitable Company
Eurocontrol Technics Group Inc.: EUO
Current Price: $0.08
Shares Outstanding: 89,160,738
Market Capitalization: $7,132,859
Price Target: $0.30
The Gold Report has experienced a dramatic increase in readership and followers recently. We recommend that followers check out an interesting and profitable play on the energy industry, Eurocontrol Technics Group Inc. (TSXV: EUO). It specializes in the acquisition, development and commercialization of innovative energy security, authentication, verification and certification technologies. Technology companies that feed into the energy industry may be good investments as the oil price remains shaky and oil companies will look for every possible way to save money. But the investment case for EUO is mainly based on its recent financial performance. Q1 income statement was as follows:
There was a substantial improvement in net income from $59K Q1 2014 to $546K in Q1 2015 on revenue growth of 36%. EUO's balance sheet also looks pretty good:
The company has $2.6 million in cash, up from $2.3 million at the end of 2014. Working capital improved from $1.6 million to $2.4 million during the past three months. EUO's management team has achieved the rare combination of cost prudence while growing the business so it is worth a look.
$546K in net profit translates to 0.6 cents of profit. Q1 was the strongest quarter for the company in 2014. If this seasonality repeats itself then 2015 EPS would trend to about a penny. However, if the company can repeat 0.6 cents in EPS going forward, that would be 2.4 cents EPS annually. A conservative 12.5x price to earnings multiple would lead to a $0.30 stock price. The Gold Report felt it was prudent to alert followers to this recently profitable company while it remains at such a low stock price. Further analysis may occur in the future, but this quick note sufficiently explains a reasonable basis to buy EUO shares in hopes of continued solid financial performance.