In today’s Daily Alert, Stock Prospector Editor Eric Dany recommends an undervalued high-tech manufacturer.
“CVD Equipment Corp. (CVV) gave up some of the previous month’s gains and we are still underwater with this pick. Part of the reason for the decline was the business interruption involved in the move to their new facilities. The move is over and the company had a ribbon cutting ceremony and open house to celebrate on March 14th.
“Leonard Rosenbaum, President and CEO, stated, ‘It has taken longer than expected, but the new facility will now enable the company to continue our growth. The new facility is over twice the size of our old facility and is laid out in a more productive working environment. The new facility allows us to bring under one roof our CVD/First Nano equipment manufacturing, Application Laboratory and CVD Materials Corporation.’
“I don’t expect the next quarter’s results to show much improvement, but the company should ramp up sales and earnings over the rest of the year. The small ($50 million) company designs, develops and manufactures customized equipment used for manufacturing solar, nano and advanced electronic components, materials and coatings for research and industrial applications. Their products are used in energy generation, energy storage, aerospace, medical, LEDs, graphene, nanowires and nanotubes. The company’s only debt is their $3.3 million mortgage and they have $18 million in cash.
“The company has excellent growth prospects. My earnings estimates are $0.85 in 2013 and $1.15 in 2014. Applying an 18x P/E ratio makes my 12-18 month target price $20.00. CVV remains undervalued. Add shares.”
- Eric Dany, Stock Prospector, March 15, 2013