Growth on the Horizon
01/26/2007 12:00 am EST
Growth investor Ian Wyatt pursues companies whose shares hold significant appreciation potential. In his latest missive to his subscribers, he highlights a smattering of businesses that offer tremendous prospects as their respective industries continue to shine, including these two companies...
"Syntax-Brillian (BRLC NASDAQ GM), a manufacturer of HDTV's and other digital entertainment products, recently announced preliminary revenue figures for the company's second fiscal quarter ended December 31st. Chairman and CEO Vincent F. Sollitto, Jr. commented, "During the quarter ended December 31, 2006 we had record revenue and unit shipments. While the results of the quarter have not yet been finalized, we believe that consolidated revenue for the quarter, including the revenue from Vivitar, will be above $240 million with LCD TV shipments in excess of 350,000 units. Additionally, we believe that gross margins will be in the top half of the range of 15% to 17% that we had previously forecasted."
"The figure of $240 million is significantly higher than the revenue guidance of $178 million to $190 million which the firm provided on Dec. 4, 2006. The company expects to release its financial results for its fiscal 2Q ended December 31, 2006 on or shortly after February 7, 2007. Syntax-Brillian was added to the growth report portfolio on December 7, 2006 at a price of $9.40. We expect shares of Syntax-Brillian to increase in the coming year and maintain our buy rating and price target of $13.00.
"TGC Industries (TGE AMEX), a leading oil and gas geophysical services firm recently announced that it agreed to "acquire six new vibrator vehicles for delivery in the first quarter of 2007 and two new shot-hole drill rigs for delivery in the second quarter. Currently, TGC has 42 vibrator vehicles and nine shot-hole drill rigs operating as energy sources."
"President and CEO Wayne Whitener commented, "Due to continued strong demand for our 3-D land seismic surveys, we deployed our eighth seismic field acquisition crew during the fourth quarter of 2006 and continue to invest in new equipment to maintain productive and efficient crews to meet our customers' needs. In May of 2006, we acquired the assets of Highland Industry for our shot-hole contract business, and this is our first purchase of new shot-hole equipment since that acquisition."
"The firm currently trades at a very reasonable 14.6x the consensus 2006 earnings estimate of $0.50 per share and 10.7x the consensus 2007 earnings estimate of $0.75 per share. We reiterate our buy rating and price target of $15.00."