ICO, Inc. (NASDAQ:ICOC)

Derivatives101 (34.53) Submitted: 6/8/2008 11:37:33 AM : Start Price: $6.92 ICOC Score: +23.84

Very well run company with an EPS of 0.70 making undervalued since intrinsic value is $8.40. A manufacturer of specialty resins and concentrates, the stock trades at a healthy earnings multiple. It has healthy profit margins and management, easily manageable debt and a history of consistent earnings. It At current price you're buying at a 15% discount which gives you a pretty good margin of safety for the stock to outperform. To reach intrinsic value at the end of the year means the stock will have gained 18% by the end of the year therefore easily beating the S&P by 8% if growth rate isnt even put into account. Seeing how high this stock has reached in the past it has so much potential to make money in these markets.
It is excluded the following industries airlines,banks/brokerages,leasing,mortgages,oil-drilling,real-estate. Secondly its PEG ratio is amazing because it is less than >0.5 making it extremely undervalued. Thirdly it is very small cap of 200 million allowing the company to grow quite quickly. Fourthly, its annual EPS growth rate is greater than 20% meaning the company actually deserves to grow its stock price by at least 20% a year annualized.