With the third partial sale of Bolt (BTJ), this gave me a "permission slip" to add a new position in my Trading Account. Looking through the list of top % gainers on the NYSE today, I came across IHS (IHS), an oil industry related company making a nice move higher today on the back of solid earnings news.
With my permission slip in hand :), I went ahead and purchased 120 shares of IHS at $44.07. I shall try to post up an entry on this company as soon as possible to explain my rationale for this selection. Meanwhile, I wanted to keep you posted with my progress for the sake of 'transparency'. As I write, IHS is trading at $44.04, up $4.08 or 10.21% on the day.
Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisers prior to making any investment decisions based on information on this website.
I purchased shares in IHS on Thursday, March 22, 2007, and I wrote it up here on the blog. I promised you that I would write up a few things about this stock, which actually has traded a bit lower since I purchased shares at $44.07. (IHS closed at $42.10 on 3/23/07) so thus far it hasn't been a knock-out purchase, but I still like the numbers and want to review the company for all of you readers here on Stock Picks!
"...provides technical information, decision-support tools, and related services to customers in the energy, defense, aerospace, construction, electronics, and automotive industries worldwide. It operates in two segments: Energy and Engineering. The Energy segment develops and delivers oil and gas industry data on exploration, development, production, and transportation activities to energy producers and oil companies. It also provides decision-support tools and operational, research, and strategic advisory services to these customers, as well as to utilities and transportation, petrochemical, coal, and power companies. The Engineering segment provides solutions, such as technical specifications and standards, regulations, parts data, design guides, and other information to customers in its targeted industries. This segment serves defense, aerospace, construction, energy, electronics, and automotive industries."
How did they do in the latest quarter?
It was the announcement of 1st quarter 2007 results after the close of trading on Wednesday, March 21, 2007, that drove the stock higher on Thursday. Revenue for the quarter ended February 28, 2007, came in at $152.6 million, up 18% over the first quarter 2006 revenue figure of $129.9 million. Net income for the quarter increased 36% to $18.4 million or $.32/diluted share, up from $13.5 million or $.24/diluted share in the same quarter last year.
In addition, the company raised guidance:
"IHS revises guidance upwards to revenue growth in the range of 11 to 13 percent and adjusted EBITDA growth in the range of 18 to 22 percent for the full year ending November 30, 2007."
The adjusted earnings per share of $.38 beat analyst expectations of $.35/share and the revenue of $152.6 million also beat expectations of $148 million in revenue.
From my perspective, this was a very strong earnings report with strong revenue and earnings growth, beating of expectations, and the raising of guidance. However, the stock price was hit on Friday, apparently from a non-event (imho) of a shareholder filing to sell 3.8 million shares in a public offering. At this time, the market seems to have absorbed this news and the stock is trading fractionally higher in after-hour quotes.
How about longer-term financial results?
If we review the Morningstar.com "5-Yr Restated" financials on IHS, we find that the company has steadily been increasing revenue from $339 million in 2002 to $551 million in 2006. Earnings were $.99/share in 2006 and from the latest report are continuing to show strong growth. (There are limited figures available on Morningstar) IHS has a long history, but as noted in the history, underwent an initial public offering on the NYSE on November 11, 2005.
The company reported 56 million shares in 2006 and 59 million in the trailing twelve months (TTM). The company reported $63 million in free cash flow in 2004, $43 million in 2005 and $105 million in 2006.
The balance sheet appears solid with $182.1 million in cash and $198.8 million in other current assets. This total of $380.9 million, when compared with the $338.5 million in current liabilities yields a current ratio of 1.125. While not as strong as many of the company reviewed here, this current ratio does not reflect the very low level of long-term debt totaling $40.6 million and the nice free cash flow.
What about some valuation numbers?
Looking at the Yahoo "Key Statistics" on IHS, we find that the company is a mid cap stock with a market capitalization of $2.47 billion. The trailing p/e is a bit rich at 42.31, with a forward p/e (fye 30-November-08) estimated at 24.91. The company is growing rapidly enough that the PEG (5 yr expected) is estimnated at 1.70. While preferring a value of 1.0 to 1.5, this isn't too far out of line for me.
Checking the Fidelity.com eresearch website, we find that the Price/Sales TTM ratio is indeed a bit steep at 4.32 compared to an industry average of 2.39. The company is also a bit richly priced in terms of profitability, with a Return on Equity (ROE) (TTM) of 11.15%, compared to an industry average of 14.11%.
Returning to Yahoo, we find that there are 58.79 million shares outstanding with only 23.43 million that float. As of 2/12/07, there were 834,300 shares out short representing 2.50% of the float or 4 trading days of volume (the short ratio). While more than my own 3 day rule for significance, this doesn't appear to be a big factor in the recent stock price rise.
No dividends are paid and no stock splits are reported on Yahoo.
What does the chart look like?
If we look at the "Point & Figure" chart on IHS from StockCharts.com, we can see that the stock has moved steadily higher since first trading at $17 in late 2005, when it came public. The chart simply looks strong to me and does not appear to evidence any particular weakness.
Summary: What do I think?
Well, I liked this stock enough to buy some shares :). Seriously, with the big move in Bolt (BTJ), I do believe I was biased enough to pick this engineering firm with ties to the energy business. Their latest quarter was great with solid revenue growth and earnings growth that beat expectations, and raising of guidance into the upcoming year. That is often enough to propel a stock higher. Meanwhile I am down a bit on the purchase, but the company is still interesting. However, valuation is a bit rich and the balance sheet, while solid, could be stronger with more current assets vs. the current liabilities. The rest looks nice.
Thanks again for visiting my blog! If you have any comments or questions, please feel free to leave them on the website, or you can email me at bobsadviceforstocks@lycos.com
Hua 101110
With equal passion I have sought knowledge. I have wished to understand the cheap ugg boots sale hearts of men. I have wished to know why the stars shine. And I have tried to apprehend the ugg bailey button triplet Pythagorean power by which number holds sway above the flux. A little of this, but not much, I have achieved. Love and knowledge, so far as they were possible, led upward toward the heavens. But ugg kensington boots always pity brought me back to earth. Echoes of cries of pain reverberate in my heart. Children in famine,ugg bailey button boots victims tortured by oppressors, helpless old people a burden to their sons, and the whole world of loneliness, poverty, and pain make a mockery of what human life should be classic short uggs. I long to alleviate this evil, but I cannot, and I too suffer. This has been my life. I have found it worth living, and would gladly live it again if the ugg classic tall boots chance were offered me.
Hua 101126
The authors of the Designer leather handbag American Declaration proclaimed happiness to be one of the essential rights that make life worth living. William James, the first Mulberry bags uk American psychologist, echoed this emphasis on happiness: If we were to ask the question:What is human life's chief concern? One of the Designer bags sale answers we should receive would be:It is happiness. Every philosophical and religious system has offered its pathway to happiness for the individual and the Mulberry alexa bags group. Happiness has been related to pleasure, refuge from pain, intellectual contemplation, union with God, friendship, children, Gucci bags 2010 wealth, honor, successful activity, and even state burial with statues!
These hand was first notices by the premium class of cheap Celine bags nd later it also become favorite among the celebrities
Why replica Fendi Directly From China On AsiaHand? Cannot find all the replica Givenchy hand and purses you need professional Replica Hand company? Look on AsiaHand
Quality: Bally bags purses makers are using more advanced methods of craftsmanship and more premium materials these days
these replica Hermes bags hands give the same look as well as feel as that of the original burberry hands
You give the sack arrive cheap Jp Tods online
Once you have found the perfect replica you should determine, through phone if possible, if the Valentino cheap re delivered to your area and how they are delivered and how long the delivery will take
Safeguard your Cheap Handbags hands by using a leather protector to prevent stains
In add this universe are GHD Use one of the best known. This is a much better choice is better than GHD straightener any other available brands of buy ghd mainly because they can not even just the hair but can also curl or wave in your hair with developing countries make to you personally, a lot of styles for hair, along with all ghd australia new and revolutionary ideas.
1.Auto repair industry in the flexible socket wrench has many uses. A socket wrench used to tune some stringed musical instruments, removing the spark plugs to use professional hex key wrench, and explosion-proof L type socket wrench. In addition there is a new type of double pipe tube cutter, can automatic tube cutting, and all-round protection function.
2.Hi-Tech Controls, Inc. and their supplier, HELUKABEL?, are a one stop source for wires and cables requiring RoHS, UL, CSA, Harmonized & CE approval. Cables for power, Drag Chain Cables,intrinsically safe cable Halogen-Free Cables, VDE Approved - PVC Control Cables Harmonized Cables, Installation Cables,thermocouple compensating cable, Flat & Ribbon Cables, Data Cables, Spiral Cables,special cables, Servo Cables & Composite Cables, Ship Cables,marine cables, D, K & KF Series Enclosures. Quantity discounts available, no minimums required in terms of ordering. $25 Million Inventory in stock.
3.There are many electrical appliances, they are Electric fan motors, microwave ovens, baking machine, cooling fan motor, bread oven, juice machine, Washing machine motor, electromagnetism furnace, water heater, evaporative cooler motor, solar water heaters, electric irons, washing machine motors and so on.
4.The Hardware Stamping Parts using L hardness test Rockwell hardness tester. In addition to other products, such as Precision metal stampings and die, paintball gun metal parts, precision shaft series and so on. Then,the hinge has the following several kinds: Brass Hinges, stainless steel hinge and a hydraulic hinge and etc. Secondly, steel pressure vessel Welding pressure vessels is a typical welding structure. Finally, professional Cooper has Tin pail, PVF Tu barrels, zinc barrels and etc.
5.Mainly engaged in auto fan, auto cooling fans, cooling fan and so on. In addition, provides a RADIATOR FAN ASSY Report, automobile headlight assembly report, SUZUKI FAN ASSY Report, engine assembly report, KIA FAN ASSY Report, current situation and future trend of Development Forecast Market Research Report and analysis report service. Note: the car WINDSHIELD WASHER at Liquid storage tank can be used for the glass of water, it is best not to use water.
1.Auto repair industry in the flexible socket wrench has many uses. A socket wrench used to tune some stringed musical instruments, removing the spark plugs to use professional hex key wrench, and explosion-proof L type socket wrench. In addition there is a new type of double pipe tube cutter, can automatic tube cutting, and all-round protection function.
2.Hi-Tech Controls, Inc. and their supplier, HELUKABEL?, are a one stop source for wires and cables requiring RoHS, UL, CSA, Harmonized & CE approval. Cables for power, Drag Chain Cables,intrinsically safe cable Halogen-Free Cables, VDE Approved - PVC Control Cables Harmonized Cables, Installation Cables,thermocouple compensating cable, Flat & Ribbon Cables, Data Cables, Spiral Cables,special cables, Servo Cables & Composite Cables, Ship Cables,marine cables, D, K & KF Series Enclosures. Quantity discounts available, no minimums required in terms of ordering. $25 Million Inventory in stock.
3.There are many electrical appliances, they are Electric fan motors, microwave ovens, baking machine, cooling fan motor, bread oven, juice machine, Washing machine motor, electromagnetism furnace, water heater, evaporative cooler motor, solar water heaters, electric irons, washing machine motors and so on.
4.The Hardware Stamping Parts using L hardness test Rockwell hardness tester. In addition to other products, such as Precision metal stampings and die, paintball gun metal parts, precision shaft series and so on. Then,the hinge has the following several kinds: Brass Hinges, stainless steel hinge and a hydraulic hinge and etc. Secondly, steel pressure vessel Welding pressure vessels is a typical welding structure. Finally, professional Cooper has Tin pail, PVF Tu barrels, zinc barrels and etc.
5.Mainly engaged in auto fan, auto cooling fans, cooling fan and so on. In addition, provides a RADIATOR FAN ASSY Report, automobile headlight assembly report, SUZUKI FAN ASSY Report, engine assembly report, KIA FAN ASSY Report, current situation and future trend of Development Forecast Market Research Report and analysis report service. Note: the car WINDSHIELD WASHER at Liquid storage tank can be used for the glass of water, it is best not to use water.
Data powered by FinancialContent.
All Rights Reserved.
Quotes delayed at least 20 minutes unless otherwise indicated.
None of the information contained on SocialPicks.com constitutes a recommendation by SocialPicks or its users that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. SocialPicks is not responsible for the posts, discussions, and recommendations of the users on the Site. SocialPicks does not provide investment advice. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the website. SocialPicks' users' past results are not necessarily indicative of future performance. Neither SocialPicks nor any of its users guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the website. You understand and agree that you use the Site and Services at your own discretion and risk and that you will be solely responsible for any damages that arise from such use. Before acting on any information contained on the website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
I purchased shares in IHS on Thursday, March 22, 2007, and I wrote it up 
$43.0 (03/23/07)
