IEAM

[ygtrdr]

We just got a mention on CNBC from an analyst from Pacific Growth Equities! Already up close to 10% on 17,000 shares. This may be a good day!

[buddjas1]

I wondered what was sparking the pre-market buying.  'bout time!!!!!

[David Randolph]

415,000 more shares for Pike.

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000333/xslF345X02/industrialfm4-061807_ex.xml

We just got a mention on CNBC from an analyst from Pacific Growth Equities! Already up close to 10% on 17,000 shares. This may be a good day!

Perhaps this will be the catalyst

I'll make a fresh review of IEAM at www.stocksonvideo.com. Good luck buddjas1, you deserve it, your hands are pretty strong on this one.

[buddjas1]

I'll make a fresh review of IEAM at www.stocksonvideo.com. Good luck buddjas1, you deserve it, your hands are pretty strong on this one.

IEAM will not fit your model unless you use EBIDTA income numbers, because of the derivative interest charges. 

Regarding strong hands, thanks for the comment.  The price will eventually reflect the fundamentals and I'll be there when it does.

Oh, don't forget ELP; I recommended it 20% ago.

[David Randolph]

IEAM will not fit your model unless you use EBIDTA income numbers, because of the derivative interest charges.

No, I'll estimate what net profit margin would be without the charges, roughly 7% after 40% income taxes

[David Randolph]

We just got a mention on CNBC from an analyst from Pacific Growth Equities! Already up close to 10% on 17,000 shares. This may be a good day!

What did he say, do you know ygtrdr?

It's important to know if that can be the catalyst or not. Initially I thought the stock was running because of report that Pike Capital increased their holdings, but instead the stock went down after that file 4 came out. So it is that analysts words that are moving the stock  ... I would like to know if it's for the right reasons.

Anybody heard? Thanks.

[buddjas1]

http://www.cnbc.com/id/15840232?video=386261609&play=1

Here's the CNBC video.  He pumps IEAM in pre-market, noting that IEAM trades with a P/E of 4.

[David Randolph]

http://www.cnbc.com/id/15840232?video=386261609&play=1

Here's the CNBC video.  He pumps IEAM in pre-market, noting that IEAM trades with a P/E of 4.

Thanks buddjas1.

[David Randolph]

Thought maybe we should try to apply David's formula to IEAM.   Being just a newby this is a rough estimate with rough numbers.  Maybe then everyone else can chime in and make it more accurate.

Initial Share Price:  6.20
Share Count: 15.6mil
Dilution Factor: ?  (Not really sure what to put here.)
Final Share Count:  18 mil (I don't know, be ignorant to think there won't be some dilution)
Initial Rev:  68 mil   (last quarters 17mil *4)
Continual Annual Growth Rate CAGR:  1.40   (again extremely conservative the last quarter it was more like 1.7)
Final Rev:  160 mill (estimate my math skills were lost years ago)
Initial Prof Margin:  .24
Final Profit Est:  .25 (Being conservative here.  CC Sounds like they are cutting a ton of corners already not sure how many more they can cut)
Final Net Income:  40 mil
EPS Estimate:  2.22
EPS Multiple:  13
Final Share Price:  28.8

Well, it's a start.  Seems too good to be true.  Could use some help from the board members.  If they hit their numbers for this quarter (which they probably will hence the CEO share purchase at the end of March.  Plus conference call in february didn't hint that anything was wrong) this stock should start to move.   Please post with your thoughts.  GL!

Hi Trumpitall, nice exercise

You made just one serious mistake, which was confusing gross margin with net profit margin. Gross margin in the March quarter was 22.2%. Net profit margin going forward, after all the charges are gone, will probably be something like 7%, after we factor in income taxes.

I'll make a brief video analysis for IEAM now, tough stock, that's probably why it is undervalued.

[Trumpitall]

Great David, Thanks.  Yeah, it was a poor attempt, but figured I would give it a try.  Can't wait to see the video.  It's been hard to be strong the last few weeks. 

 

[Ramsburg]

The new video analysis by David Randolph (Rating IEAM with 8 out of 10)

A video Analysis from 3StocksOnFire.org

[buddjas1]

I hate taxes.  CEO, I believe, stated that IEAM would not pay income tax until FY09.  I have to double check that, but I know that topic was dicussed in the last conference call. 

IEAM will surely pass by 10, and sooner than later, I bet.

[buddjas1]

http://www.sec.gov/Archives/edgar/data/1059677/000101359407000348/xslF345X02/industrialfm4-062207_ex.xml

356,000 more for Pike.  Pike's going to end up owning the whole company.

[la-onda]

from clipreport today:
IEAM Sees Increase in Institutional Buying
....
Another name has recently seen an increase in institutional buying:
Industrial Enterprises of America

(IEAM) is a holding company with four wholly owned subsidiaries, EMC Packaging, Inc, Unifide
Industries, Todays Way Manufacturing, LLC, and Spinwell Holding Company, LLC.
EMC's business consists of converting hydrofluorocarbon gases ("HFC") R134a and R152a into
branded private label refrigerant and propellant products. Unifide is a leading marketer and seller of automotive chemicals and additives, and Todays Way manufactures and packages the products sold by Unifide.
Spinwell, through its wholly owned subsidiary Pitt Penn Oil Co., LLC, is a leading manufacturer,
marketer and seller of automotive chemicals and additives. Shares of the Company were recently accumulated by Pike Capital which had amassed over 24% of the total shares. The large stake could be a sign of some interesting quarters ahead. As are the buys by CEO, John Mazzuto, which have totaled over 600 thousand shares in the last 9 months. One reason for the buys could be the recent earnings reports that have showed some improving conditions.

Revenue for the third quarter was $17.6 million as compared with $9.0 million for the same period in fiscal 2006, a 95% increase. The increase in revenue over last year was partially
due to the inclusion of the Pitt Penn Group, acquired January, 2006, and more importantly due to increased production capabilities.
The GAAP bottom line numbers were somewhat misleading though. Earnings were for a loss of
47c per share versus a loss of $1.60 per share the year before. The numbers included an accounting change from their recent acquisition of Pitt Penn. The inventory accounting method was corrected from average cost accounting to FIFO (First In, First Out).
Absent the accounting correction, results for the third quarter would have been a gross profit of
$4.8 million, representing a gross margin of 27.3%, and EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.7 million, or $0.29 per share, calculated using the treasury method, or 13 million shares as of March 31, 2007.
When taking the non GAAP numbers into consideration, the name could be grossly undervalued
which would explain the investments from Pike and others.

Add to the fact that the company increased unit through-put by approximately 30% through improved operating efficiencies and additional manufacturing shifts even though orders continued to outpace shipments and the name becomes one to track over the coming quarters. Investors would be wise to watch.

http://www.knobias.com/clipreport/clipreport.pdf

Chart & Insider Trading:

[buddjas1]

Thanks for the post, la-onda.  Applaud.