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Edac Technologies Corp. Message Board

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  • uptabdowntab uptabdowntab May 3, 2012 5:33 PM Flag

    Boeing Supplier's Profit Jumps

    In the back of his mind, perhaps he has some concerns regarding the move. He really shouldn't though, this isn't too difficult to smoothly execute. Even the new machines being bought, 9X out of 10 the company that sold them is responsible to get them up and running and qualified. They will be on site to handle any glitches. Also, the move is down the road not across the ocean. Lastly, their current engineers, techs, and operators are going to be doing the work, not new hires.

    The entire microcap market is more or less broken these days. Values abound everywhere you look....TA, EDAC, HSKA, and many others. No one is buying anything except big div paying companies.

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    • Interesting example. HSKA is trading at a P/E of 31. EDAC would be $27 a share TODAY if it had a similar valuation. Not only that, HSKA's earnings have actually gotten worse over the past 4 quarters where EDAC's sales AND earnings have improved each quarter. If anybody should be trading at a P/E of 31, it should be EDAC. TA's in a different line of business and their earnings are skewed because they haven't paid any taxes in the past year at least. Their earnings would go down significantly and their P/E ratio would be much higher once they remain profitable and start paying taxes.

      The commercial aerospace industry is very strong. You can look at the earnings of BA, GE, ATRO, SPR, GR, the list goes on and on. All the aerospace companies are reporting strong earnings and have said the outlook for the future remains very positive. EDAC was just given a $23/share price target by Valuentum/Seeking Alpha and they have been consistently low with their estimates of EDAC and have had to raise the target quickly from $10 to $15 and now $23.

      EDAC is being shorted. Remember how I said EDAC's shares were being shorted at EXACTLY 4:00:00 pm on the closing bell every day to artificially drop the price of the stock? It's still happening. Look for yourself.

      No human can consistently trade on the exact nanosecond the market closes. Every single day, EDAC is being shorted throughout the day and at the exact nanosecond the market closes to further depress the price of the stock. EDAC is being manipulated and I believe the poster that said they are trying to buy the company and keeping the price down helps them negotiate a lower buyout price. Nothing else really makes much sense. EDAC is undervalued by about $12 million in market cap right now so whoever is shorting it in order to negotiate a lower price is doing a good job.

      Pagano needs to help by stopping his ridiculously low estimates. He has beaten my earnings estimates for 4 straight quarters. His predictions for Q3 and Q4 are potentially scaring institutional investors away because why would somebody buy a company when they said Q3 and Q4 sales would come in flat with Q1? I know the truth, that Pagano is consistently lowballing the estimates. Underpromise and overdeliver. Pagano has been doing that quarter after quarter. He should have left his estimates with Q2 as being "strong" and left it at that. I will be shocked if Q3 and Q4 don't come in with higher sales than Q1. He did the same thing last year and Q4 was the best record in the company's history (until they announced Q1 2012).

      Now we need to wait for yet another $50 million contract to serve as a catalyst, or else have to wait until July's earnings to prove to everyone how strong EDAC is and will continue to be.