Ty Huggins just posted a positive article about AGX on Seeking Alpha. He looks at Argan's lack of debt, return on capital and no analyst coverage to project Argan to a price as high as 102. I think we should at least see the old highs prior to earnings and the once a year dividend. Long AGX!
Is AGX undervalued? This sort of setup suggests potential upside... if you guys have questions you should ask awe_some_stock.s. They often respond to my emails which is helpful.
Is AGX overvalued at current levels? Yo you should really check out awesome_stocks, they seem on point with their stocks.
I really don't understand this price action. AGX has earned $5.05 per share (TTM). At $59 that is a 11.7 P/E. There is $34/share cash on the balance sheet . Strip out the cash and the P/E is 4.95. Gemma power systems is the main business contributing the profits. It is in the business of building natural gas power plants which in my opinion are the wave of the future. AGX may not be TSLA but they are certainly in the sweet spot. Maybe management should start being more transparent in their marketing and proactive in driving the stock price to fair value? Share buybacks?
Yahoo Finance Insights
AGX is up 10.48% to 64.85
Jayme, You are correct AGX is a holding company. Essentially Gemma Power Systems is the subsidiary that counts for almost all the profits. In addition to the subs AGX has $34 in cash. The main thing I am drawn to is the business Gemma is in and my expectation for growth. Yesterday I read 2 articles that bolster this position. First there was an article about investments in west Texas oil drilling that Blackstone (BX) was investing in pipelines. The article stated that about 50% of the production is natural gas. The price of natural gas is down 13% yoy according to the article. The second article was one about the 3 mile island nuclear plant in Pa. It talked about the near meltdown in 1979 and that now due to competition from new natural gas fired plants, 3 mile island needs either a bailout from Pa. or to be shut down. Gemma has already completed nat gas powered plants in Pa. and is expanding. I predict that this type of electric energy production is here to stay. As for insider sales I think when you get paid in restricted company stock for many years, it is advisable to diversify your holdings when the time comes that you are vested in the shares or options.
Frank, I spent the weekend reading the 10K. It is the legal structure that it misleading. AGX has no assets or operations other than the subsidiaries. This company is structured as a holding company. I was originally attracted to the low enterprise value relative to its EBITDA...roughly 3.6x. What turned me away is the heavy insider selling at prices not much higher than the current price. And there has been no insider buying of the stock. The asymmetric information signaling with respect to insider transactions is so overriding of every other analysis one can bring to the table. I'll pass.
There have been very few posts on this board. I would like to get the ball rolling. Hopefully we can learn something. I am trying to figure out what is behind the 15% selloff in AGX? AGX has a market cap of about $950mm, cash of $523mm ($34/share), no debt, 1.1% dividend with a 15% payout ratio and they just announced a new project in the UK. The p/e sits at 13.8. Looks extremely cheap to me vs the market. Does anyone know why it is down 15%?
the market is just stupid right now, many expecting a large upswing in june when big buyers have to buy or sit on their hands the rest of the year
Do you think this p/e(ttm) of 18.57 is showing us a buy signal now on AGX? I mean its not the end all be all of indicators but its definitely a good guide stick from my experience. Do you guys find it difficult to know when to buy or sell something? I prefer to get my stocks from awesome-STOCKS.
CBI is a great alternative to AGX
Excellent. Just as I had predicted AGX was clearly very undervalued. It had seemed like an extreme prediction to say AGX would be over $44 per share at the time. But now indeed it is over $44 per share. AGX closed at $58 per share today. Congrats to all on the huge increase in value of AGX. This one is now more fairly valued. There are a lot of other undervalued stocks, mostly small caps (market cap less than $2 Billion) that are similarly way undervalued. Companies like FONR, SPRS, UEPS, NCIT, HDSN, TAYD, and CZBS are nicely profitable and out-of-favor just like AGX was 6 months ago. Probably will rise over 60% as well. Enjoy.
The increase in electric cars is leading to increased need for electric power generation. Also, decreased use of nuclear energy is leading to increased need for natural gas-based electric power generation facilities. Plus, it takes the equivalent of 4 years of energy in order to manufacture a photovoltaic cell panel. This is why AGX backlog is up and why AGX will continue to grow.
AGX will likely make $3.50+ EPS for 2016. Tack on a conservative 14-15 PE, and stock is over $50. AGX has been a great growth story, and it appears it could continue for years to come.
AGX cheap in the $30s. IMO
Analysts have $50+ price targets. I agree- more like $55 IMO
Earnings out. There is my answer. Looks good to me. EPS a big beat. Rev. slightly less. More and more projects and backlog. I think this company will earn $4-5 per share in 2017.
wow, this stock looks prime to go. GRWC chart looks solid, dont write this one off. This cannabis play has already shown in the past it can run hard
Argan earnings. I see Argan is scheduled to present at the Avondale conference tomorrow, June 8. Does anyone know when earnings will be released? They released last year on June 8.