RE: Patience is required.Hello Hoboman1 - welcome to the Allen-Vanguard bullboard.
Here is a
brief summary of some of the relevant facts as I see them. The first and most obvious place to look is the company's most recent financial results (FY 2007 ended Sept. 30/07) . A few highlights:
- Q4 revenue was $50.0 million, with EBITDA of $8.4 million (net of a one time inventory charge of $1.2 million), up from revenue of $20.0 million and EBITDA of $2.9 million in Q4 of FY 06.
- Revenue and EBITDA for FY 07 was $96.2 million and $10.0 million, respectively, up from $56.8 million and $4.3 million, respectively, in FY 06.
- VRS entered fiscal 2008 with a backlog of $135 million (more than enough to beat FY 2007's revenue numbers)
- The company continues to generate healthy cash flow (cash at end of FY 2007 was $20.4M vs. $5.7M at end of FY 2006).
- Gross Margin remains strong - in the 40% range.
- acquisition of Med-Eng at the end on FY 2007 is a good fit for VRS and represents opportunity to leverage growth for FY 2008 and beyond.
- IED's remain the number one threat for NATO troops in Iraq and Afghanistan. VRS is a leader in counter-IED measures.
If you are so inclined, you may also want to refer to analyst coverage such as Versant, although I am always leery of such sources as they often have a vested interest in the performance of the stock.
https://www.grandich.com/reports/versant.01.07.08.pdf" target=_blank>https://www.grandich.com/reports/versant.01.07.08.pdf
Having said all of this, I am still of the opinion that VRS will continue to suffer, in the short-term, given the negative sentiment that dominates the market. Therefore, delaying your purchase by a couple of months may prove to be a very wise & lucrative decision.
In the spirit of open and well-rounded debate, I invite all participants on this bullboard (particularly saniyya and MestQalander) to provide us with facts to support a more negative long-term view of this stock. I am always open to new information and fact-based opinion.
I hope this helps Hoboman1 - Happy Investing!