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A O Smith Corp V.AOS


Primary Symbol: AOS

A. O. Smith Corporation applies technologies and solutions to products manufactured and marketed worldwide. The Company operates through two segments: North America and Rest of World. Both the segments manufacture and market a comprehensive line of residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products. Its Rest of World segment is primarily comprised of China, Europe, and India. The North America segment serves residential and commercial end markets with a range of products, including water heaters, boilers, water treatment products, and other. The Company also manufactures expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. Its Lochinvar brand is a residential and commercial boiler brand in the United States. Its water softener branded products and problem well water solutions include the Hague, Impact Water, Water-Right, Master Water, Atlantic Filter and Water Tec brands.


NYSE:AOS - Post by User

Bullboard Posts
Comment by commoditiesbullon Mar 23, 2009 12:41pm
457 Views
Post# 15863289

RE: Tomorrow as news get out . . .

RE: Tomorrow as news get out . . .You are exactly correct. Even with today's rally, the market cap of this company is only $24M. AOS still has nearly $20M in cash meaning their Ladyfern discovery and their oil sands asset is worth $4M. Clearly, this is too low.

As you note, today's trading is still only amongst a small circle of people following this story. In effect, we may be looking at a new boom area for high productivity, high reserve wells. Participants with land spreads there will see their share prices rise considerably. Over the next few days, word of this discovery will spread amongst analysts, brokers, and junior investors. This is a monster-well for a junior and should create significant exploration in the area. I suspect AOS will make the TSX biggest % gainers in tomorrow's newspaper which will draw in additional attention.

If you think this well and their oil sand assets are worth more than $4M, you should be buying this stock. It would not surprise me to see the share price double from here.
Bullboard Posts
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