Here is a stock I've been having success with for the past few months:
I got in most recently at about $21.60 on that upswing from the low trough in September. Since then, EXLP has risen to $23.43 at the closing bell on October 12, 2010. That is about 8.5% in just a few weeks! Not bad!
What I like about EXLP is that it is a solid company with very healthy financials. Here are some key stats for FYE 2009:
P/E Ratio: 34.56
Capital Expenditures: 18M
Free Cash Flow: 38M
Current Ratio: 1.2
Debt/Equity: 2.01
3 Yr Revenue Growth: 31%
3 Yr Operating Income Growth: 5%The consistent growth in revenue and operating income is a good sign, no-brainer. But considering also that the company continues to invest in capital assets (capital expenditures of 18M) and maintains positive free cash flow (38M) and a healthy current ratio, I'd say we have at least a candidate for value.
The P/E Ratio concerns me a little, but I'm still anticipating a rebound from the most recent low back to $26 or $27 before the next dividend early November. I'll probably exit partially at $24.50 and the rest somewhere between $25.25 and $26.00.
Oh, and I almost forgot to mention. EXLP maintained a steady dividend through the 2008 crash and in fact increased its dividend in December 2008 when the market was at its lowest.
I think there is considerable opportunity to ride this one further, but watch out for a brief retraction after dividends are declared in November. After that, it will probably be worth taking another look for re-entry.
Chart courtesy of freestockcharts.com
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