3SOF

Breaking out again.  Here is why:

http://biz.yahoo.com/pz/061211/110226.html

$10 million share repurchase program.

 

Trading range getting pretty tight, here.  Symmetrical triangle about to close.  Could see the next leg up start before the end of the day.

update:

1)
Industrial Enterprises of America Forms Joint Venture With Sinochem Ningbo Ltd.
Monday December 18, 11:53 am ET

NEW YORK, Dec. 18, 2006 (PRIME NEWSWIRE) -- Industrial Enterprises of America, Inc. (OTC BB:IEAM.OB - News), a specialty automotive aftermarket supplier, today announced that the Company has entered into a Joint Venture agreement with Sinochem Ningbo Ltd., a subsidiary of Sinochem Corporation, for the packaging of refrigerant gases in China for worldwide distribution. Sinochem Corporation is China's largest chemicals trader and a Global 500 Company.
Per the agreement, IEAM will provide packaging equipment and expertise as well as train the staff for the facility which will be provided by Sinochem. Profits from the venture will be effectively equally split between the two parties.
Industrial Enterprises anticipates that the Joint Venture will begin operations early next year, with a full transfer of equipment and trained personnel between IEAM and Sinochem's facilities to be complete by the end of March.
John Mazzuto, Chief Executive Officer of Industrial Enterprises of America, commented, ``This new venture has the potential to increase the earnings of our company dramatically as this facility will be shipping worldwide. We expect this Joint Venture to be a strong profit center for IEAM for many years to come. Although it is premature to forecast earnings for the new venture, I would expect it to have at least the same impact as the acquisition of Pitt Penn.''
Sinochem Ningbo Ltd. was established in 1987 and is a subsidiary of China National Chemicals Import & Export Corporation (SINOCHEM), which ranked 276th among the top 500 enterprises in the world.

ket & buddjas1, you are still invested?
cheers
Oliver

Sold near 5 last week.  I get the impression that someone is converting warrants at 5 and holding IEAM down.  I will give IEAM another look after it breaks through 5.

I retook a small position last week today at $4.17.  It is now 5.25 and climbing.  The company's share repurchase program is taking warrants out the system, which is helping.  News of NASDAQ listing has to happen here sooner than later.  I will keep adding early next week. 

Financials-

I usually make a table here.  However, it does not make sense for IEAM, right now.  The company is still working to incorporate its main revenue source PittPenn and is restructuring that component. 

The most recent 10Q for Q207, on the surface, was unimpressive, as David pointed out in his most recent analysis:
Rev - $16,981,153                    (vs. $ 10,035,386 Q107)
Op Income - $2,257,193           (vs. $ 345,595   Q107)
Net Income - ($1,810,891)
EPS - ($0.19)
Shares - 13,900,000

However, net income was skewed by ($4,096,012) "in non-cash expenses associated with the company's convertible securities and warrants. The conversion of over 50% of the convertible notes and exercise of warrants resulted in an accelerated charge to income of the valuation of such securities added to the balance sheet arising from their issuance."

Knock out the conversion non-cash expenses, "real" EPS was $2,285,120 or $0.164 per share.

http://www.sec.gov/Archives/edgar/data/1059677/000135471707000017/press.htm
http://www.sec.gov/Archives/edgar/data/1059677/000135471706000102/f10qsb.htm

Guidance -

Growth, growth, growth:

"For the third fiscal quarter, Industrial Enterprises estimates revenue of approximately $25 million, with EBITDA per share of $0.32-$0.34. For the fourth fiscal quarter, the company estimates revenue of approximately $30 million, with EBITDA per share of $0.50-$0.52. For fiscal year 2007, Industrial Enterprises estimates total revenue of approximately $80 million, with EBITDA per share of $1.22-$1.24 including the first quarter's $2.4 million income from asset sales. EBITDA per share is calculated using the current fully diluted share count, including treasury method, of 13.9 million shares. "

http://www.sec.gov/Archives/edgar/data/1059677/000135471707000017/press.htm

Anti-dilution Program-

Rather than dilute, like most BB stocks, IEAM has implemented a $10,000,000 share repurchase program.  As of February 16, 950,000 shares were repurchased.  The program will be completed by Sept. 2007.

http://www.sec.gov/Archives/edgar/data/1059677/000135471707000017/press.htm
http://www.sec.gov/Archives/edgar/data/1059677/000135471707000002/press.htm
http://www.sec.gov/Archives/edgar/data/1059677/000135471706000108/press.htm

Institional Purchases-
This is crazy for a BB.

March 16, 2007 - 800,000 shares

http://www.sec.gov/Archives/edgar/data/1059677/000089843207000285/alydar13g.txt

March 21-22, 2007 - 245,000 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000196/xslF345X02/industrialfm4-032307_ex.xml

March 19, 2007 - 10,380 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000192/xslF345X02/industrialfm4-032107_ex.xml

Feb. 27, 2007 - 413,100 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000160/xslF345X02/industrialfm4-030107_ex.xml

Feb. 26, 2007 - 243,070 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000158/xslF345X02/industrialfm4-022707_ex.xml

Feb. 20, 2007 - 220,770 shares

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000154/xslF345X02/industrialfm4-022107_2ex.xml

Feb. 16, 2007 - 174.893 shares
http://www.sec.gov/Archives/edgar/data/1059677/000101359407000152/xslF345X02/industrialfm4-022107_1ex.xml

Insider Purchases-

March 19, 2007 - 150,000 shares

http://www.sec.gov/Archives/edgar/data/1059677/000116694407000001/xslF345X02/primary_doc.xml

Dec. 5, 2006 - 100,000 shares

http://www.sec.gov/Archives/edgar/data/1059677/000116694406000009/xslF345X02/primary_doc.xml

Dec. 4, 2006 - 90,500 shares

http://www.sec.gov/Archives/edgar/data/1059677/000135410106000006/xslF345X02/primary_doc.xml
http://www.sec.gov/Archives/edgar/data/1059677/000116694406000008/xslF345X02/primary_doc.xml
http://www.sec.gov/Archives/edgar/data/1059677/000116694406000007/xslF345X02/primary_doc.xml
http://www.sec.gov/Archives/edgar/data/1059677/000129141306000009/xslF345X02/primary_doc.xml

Future Growth-

Acquisition of fire extinguisher company on Feb 1, 2007:
http://biz.yahoo.com/pz/070201/112960.html

Joint venture with Chinese gas packager on Dec. 18, 2006:
"This new venture has the potential to increase the earnings of our company dramatically as this facility will be shipping worldwide. We expect this Joint Venture to be a strong profit center for IEAM for many years to come. Although it is premature to forecast earnings for the new venture, I would expect it to have at least the same impact as the acquisition of Pitt Penn.''

http://biz.yahoo.com/pz/061218/110633.html

Conclusion -

This is a hidden gem.  The non-cash derivative charges are hiding the true value of this company.  I anticipate that the non-cash derivative charges will dissappear by the end of the year.  Bottom line then will be over $0.50 EPS for the quarter.  And, that is just PittPenn.  Add in the China joint venture and IEAM will in a position to post over $1.00 per quarter by the end of the calendar year or soon thereafter.  That's $4.00 EPS for a full year!  A NASDAQ listing is in process, as well.

Industry average PE is 26.8. 
http://biz.yahoo.com/ic/113.html 

That makes IEAM a $107 stock that is now trading at $5.90.  That's right, an 18 bagger here folks. 
Couldn't be you say....  Why are all the institutions and insiders buying then?

Hello Buddjas,

I've been watching this one too, got out about the same time you did with a smiliar gain. 

What's with the CEO's big purchase on March 19th?

How reputable is Pike Capital? 

I might buy some tomorrow. 

nice chart 
just fyi:

I have listening to the last web cast and I have bought IEAM @ 5.91$ 

why?
please check the slides (thanks & applauds buddjas1 for bringing this on my radar!)

cheers
Oliver


slide show part 1:

webcast (March 14th):
http://www.wsw.com/webcast/brileyco8/ieam.ob/

great comments and outlook, mandatory IMHO


slide show part 2:

Bought some shares today at $5.88 looks good ........

Nice move up today to close at $6.11

CEO bought 100,000 shares today at $6.00

P   2007-03-28   2007-03-28 15:28:51   Industrial Enterprises of America, Inc.   IEAM   MAZZUTO JOHN D   CEO   100,000   $6.00   $600,000.00   557,500   

It's funny that when the form 4 appeared on the SEC website, IEAM had not yet traded 100,000 all day.  Non open market purchase?