Small Cap Updates & New Recommendations – April 5, 2014 post image

This week we have updates on Enterprise Group (E), Global Minerals (CTG) and IsoRay (ISR).

Enterprise Group (E – $1.02), a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries, announced strong financial results for its fiscal year 2013.

Revenues for 2013 reached $34.8 million, an increase of $16.3 million or 88%, compared with fiscal year 2012. This increase can mainly be attributed to the acquisition Calgary Tunnelling & Horizontal Augering Ltd. (“CTHA”) in June 2013, as well as expansion of Enterprise’s service equipment fleet, which has allowed the Company to both increase its capacity and attract projects from major customers.

Thanks to the significant increase in revenues, EBITDAS increased from $4.4 million in 2012 to $10.0 million in 2013. Earnings per share were $0.08 for 2013, an increase of $0.04 when compared to the prior year.

Looking ahead, Enterprise expects that the performance of its Utilities/Infrastructure Division will continue to improve. During 2013, this Division renewed a three year, multi-million dollar service contract with one of Canada’s premier [click to continue…]

IsoRay logo

IsoRay Inc’s (ISR – $2.42) stock price went through the roof this week as it announced the world’s first successfully completed pediatric implant using IsoRay Medical’s Cesium-131 brachytherapy mesh.

We first featured IsoRay on Smallcaps Investment Research two months ago at 75 cents because we felt that a company with such a valuable technology and an FDA approved product was significantly undervalued with a market cap of only $30 million. Although it’s gone way faster than expected, it’s nice to see that the market recognizes these facts.

Dr. Anthony Crimaldi at Levine Cancer Institute, Charlotte, NC, said “The patient was a 12 year old male who was diagnosed with recurrent metastatic Wilms tumor (a type of childhood kidney tumor) in the pleural space of the lower aspect of his left chest. Prior to this he had been treated extensively, but nevertheless the cancer returned.

Due to previous irradiation of his chest (specifically whole lung irradiation), the patient was not a candidate for either SBRT (stereotactic radiosurgery) or proton therapy for treatment of this lesion. Although surgical removal of the tumor was possible, radiation therapy was needed in this case to treat the surgical bed.

I worked closely with IsoRay to design a custom mesh containing Cesium-131 sources and we were able to place the mesh at the time of surgery so as not to expose critical [click to continue…]

Acme United’s Solid 2014 Outlook Justifies Price Target Increase to Above $25 post image

Acme United (ACU – $17.58) broke another sales record in fiscal year 2013. All brands contributed to this strong performance.

Acme United constantly introduces new tools and gains market share with its existing products, leading to growth in both revenues and earnings. The Company’s balance sheet is healthy and can handle an acquisition when the right opportunity comes along.

For 2014, Acme estimates it can increase its revenues to around $100 million, which would be a significant milestone in the Company’s history. As for its earnings, the Company gave an estimate of between $4.3 million and $4.6 million, or earnings per share between $1.26 and $1.33. With many new products, such as Camillus knives and first aid kits, lined up to enter stores, we’re confident this 2014 guidance will again be achieved.

Until we have a clearer picture of how Acme’s results develop in 2014, we’ll use the average of the Company’s sales and earnings projections in our valuation. Based on these calculations, we reiterate our buy recommendation for Acme United Corp. with a price target of $25.32, which is 44% above today’s stock price.

Download your copy of the fourth quarter 2013 Acme United Company Report.

Download Advice: BuyPrice Target: $25.32Latest Company Report (pdf)
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