RWC, Growth, Low PE, No debt, Bridgeway is buying

Discussion in 'Stocks' started by qll, Oct 3, 2006.

  1. qll

    qll

    RWC is another perfect stock.
    High growth: Sales is up 30+% year over year
    Gross margin is increased from 50% to 55%.
    Low PE. using its 15c/6months, we get only PE 27 for a high growth company.
    BRIDGEWAY CAPITAL has 257,900 shares, an incrase of 45,500 or 21.42% since last Q. Bridgeway is the investor in HANS, PARL, HSOA.
    The company has NO Debt. Balance sheet is great and CLEAN!

    From its 10Q on Aug 04th
    For the three and six months ended June 30, 2006, sales increased approximately 34.1% ($2.2 million) and 32.1% ($3.8 million), respectively, compared to the same periods last year. Gross margins as a percent of sales for the three and six months ended June 30, 2006 improved to 56.8% and 55.2%, respectively, compared to 51.0% and 47.8%, respectively, for the same periods last year. Pretax income for the three and six months ended June 30, 2006 increased approximately 109.8% ($0.9 million) and 134.5% ($1.8 million), respectively, compared to the same periods last year.

    Also on
    http://us.rd.yahoo.com/finance/exte...cz_jr_1003streetwalker9.html?partner=yahootix
    Five Stock Prospects Under $10

    Technically:
    Drop since 10Q, then finding support around $6, then jump to around $8 now, it broke the resistance level at $8.
    Heading to much higher level

    My past picks:
    TRT up 80% in 2 months http://www.elitetrader.com/vb/showthread.php?s=&threadid=73579
    BOBJ up 40% in 2 months. http://www.elitetrader.com/vb/showthread.php?s=&threadid=73647
     
  2. You aren't too good with cash flow analysis huh?

    I see the TRT pump is over, stock is in dump mode.
     
  3. Yep, it was perfect stock. Just about a year ago.

    No debt? You mean, not enough confidence to lever their asset base with rates STILL being near generational lows?

    Attached is a real chart.
     
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  4. qll

    qll

    No long term debt.
    Take a look at 6 month and 1 year chart. Technically, it has another 50% run from this price level.
    The company is facing a high growth, New Products, New Contracts, Renewed Government Orders.
    Most important is the Gross Margin. Most growth companies grow at the cost of a lowered gross margin, because they either lower their product price, increase marketing expense, or open new factories. RWC looks like a perfect stock. It reminds TASR.