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China Fire & Security Group (CFSG) supplies industrial fire safety products and systems to companies in the iron and steel, power and petrochemical industries in China. The company today announced fourth quarter results which beat analyst estimations, showing increased revenue and earnings. The company is in a strong financial position with no debt and a healthy cash flow.
In the past, China has not been known for its strong track record in the arena of health and safety, but as the country continues to show tremendous growth, it makes sense that they will endeavor to protect their investments. Companies like China Fire & Security Group (CFSG) should flourish as a result. Interestingly, the company has a high insider ownership and yet has almost a 10% short interest.
China Fire & Security Group (CFSG) has been on my watchlist for several months as it is in a strong position to benefit from any government infrastructure spending and stimulus efforts in China.
Disclosure: At the time of writing the author did not hold shares in China Fire & Security Group (CFSG).
Ecology & Environment (EEI) is an environmental consulting and testing firm. The Company offers a range of environmental consulting services, including environmental audits, impact assessments, surveys, analysis, monitoring, air quality management, pollution control, and environmental infrastructure planning.
The company boasts low debt, high insider ownership and has been successfully growing both earnings and sales despite the difficult economic climate. The stock price has appreciated greatly in the past three months from a 52 week low of $7.30 to its current price of $12.69. With a current P/E of 19, I would expect the stock price to trade sideways in the $11-14 range for the next 6 months before rising to a 12-month price target of about $16.
Disclosure: At the time of writing the author did not hold shares in Ecology & Environmental (EEI).
Versar, Inc. (VSR) is a professional services company which specializes in project management and infrastructure services for government and private sector clients. A number of analysts see this company as being like a mini Halliburton, and with its wealth of government and military contracts I tend to agree. Versar, Inc. (VSR) has high insider ownership, good growth and practically no debt.
The one unresolved question is how will the company's fortunes change following the Presidential switch in the next week? If the Obama adminstration is favorable towards Versar (VSR) then this will prove to be a very profitable investment. Some may say that the stock price has increased substantially since the Election, suggesting the change at the White House is already priced in, but I believe this one has a long further to run. The one thing missing is a nice dividend payment!Versar, Inc. (VSR) currently trades at a trailing P/E of 12.3 and a price of $3.85. I anticipate a 12-month price target of $9.Disclosure: At the time of writing the author held shares in Versar, Inc. (VSR).
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