“OYO Geospace Corp. (OYOG) fell on oil’s recent weakness. Trading at 13.4-times trailing earnings, and with [over 25%] revenue growth projected, but slightly lower earnings growth, OYO Geospace is a buy. The company [has a unique] position in the seismic instrument industry. It does everything from design and test to build, sell and rent. It is consistently profitable and has a very low share count for its size, two positives that should please investors.
“The stock sold off in August after coming in a bit light on earnings. It delivered $1.44 versus the $1.49 expected, although year-over-year EPS was still up 64% and revenues were up 31%. The recent correction brought OYOG back to its same price of a year ago. At this level, I think shares are a good buy. I am a bit concerned about management’s cautious comments from the last quarter, which were clearly not intended to be a marketing message. But despite this the stock still offers tremendous upside. And I like the conservative management style and huge earnings per share.”
Ian Wyatt, SmallCapInvestor PRO, October 14, 2011
