+ Watch GENC
on My Watchlist
Negative enterprise value
Net/Net , selling less than it cash value
Company selling for less than cash and short term investment on balance sheet- a new highway bill should be a catalyst for the country
road construction and a new tech company
Gencor Industries is a manufacturer of heavy machinery used in such things a road construction. Gencor also produces hot mis silos, fabric filtration systems, cold feed bins, pumping equipment for very viscous materials, rotary dryers, fluid heat transfer systems and other highly specialized equipment. The campany has been in business since 1968. It was formerly inown as Mechtron International but the name was changed to Gencor in 1987. The current P/E is under 6 with earnings of $2.43/share and a current price of only $13.07. Gencor appears to be seriously undervalued in todays market.Forcast earnings growth per share for the coming year are over 30%.With our country's serious infrastructure problems, we have a lot of catching up to do in bridge and highway repair and construction. Gencor appears to have very good fundamentals for long term solid growth.A share price increase of over 100% would not be out of the question.
CEO and one of directors clearly got in a fight and Miller sold his shares at a fast rate (and is just finishing off selling). He had a great deal of shares so this in combination with the drastic drop in earnings have caused too large of a sell off. # Mr. Lloyd Miller only attended the Board meeting immediately after being elected to the Board on March 6, 2008. At that Board meeting he was elected to the Audit Committee but never attended one of it's meetings and then resigned from the Board on May 7, 2008, and based on recent conversations with management, he did so purely for personal reasons and convenience and maintains a professed high esteem for the company, its management, and its future.# The resignation of Mr. Miller from the Board left a vacancy in the Audit Committee, which the Board will be moving forward to fill with a qualified independent director well within the period allowed by NASDAQ. Therefore, there is no issue.A side note he used all of the money gained off GENC sale to purchase transworld entertainment.GENC has far too much cash and has products that we will need for the foreseeable future.
Gencor Industries is a diversified heavy machinery manufacturer for the production of highway construction materials, synthetic fuels and environmental control machinery and equipment used in a variety of applications. PE under 7. Some equipment manufacturers have eliminated construction equipment for the sake of agricultural equipment's booming market, possibly leaving large market share for this company when highway construction picks up.
Debt free with roughly 43% of market cap in cash, Gencor is a busted momentum darling that has now reached an attractive long term value buy zone around $17. Company's results were not that bad; expect road building industry to experience renewed investor interest post election - strong long term buy on this small cap.
Technical triggering Buy, look for 5 percent move next week.
This firm is in all the right businesses - heavy machinery for highway production, synthetic fuels, environmental control equipment, etc. Working on developing different biomass fuels, waste fuel recovery, asphalt recycling, other products. Need for investment in infrastructure and alternative fuels is overwhelming. What else is good:- P/E of 10 (note: trailing results were unusually strong)- Steady increase in shareholder's equity past 5 years while debt was eliminated- Keeps increasing R&D spend at steady rate- Great liquidity/working cash position- 37% ROE- Impressively for small-cap stock, has suffered no serious corrections for about 5 yearsBuy it, sleep well. It'll eventually rip.
Sitting in a good market and position for long term growth Gencor Industries, Inc., is a manufacturer of asphalt plants, soil remediation plants, combustion systems and screening equipment for the road and highway construction industry.
This growing food shortage problem is going to get worse and since the dems are going to be taking over the White House, I'm pretty sure right now is a good time to get into anything farm related. Say hello to government aid money.
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