Administrator
Posts:43
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EDAC needs very little to go its way during the coming upswing to really move the needle with respect to operating and share-price performance. The firm, $20 million market cap (yes, that's not a typo: it's tiny), is a supplier of precision components (jet engine parts, special tooling, etc.) to the aerospace sector. United Technologies is its largest customer at about 44% of revenue, and EDAC has secured a position on the firm's geared turbofan engine (high pressure compressor hubs, turbine disks, etc.), which is turning into a favorite powerplant among commercial OEMs in the narrowbody arena.
The firm is also a supplier on Boeing's 787 Dreamliner (fan cowl, fan blisk) and the Joint Strike Fighter (compressor integrated blade rotors, compressor fan case, etc.). In fact, less than five years ago, EDAC was producing parts for only one client and a single engine, but now the firm is on over ten major engine programs across a wider range of customers. Growth in backlog has been stunning, and thanks to a new multi-year $42 million agreement to supply additional engine parts to a leading European engine maker (announced this year), backlog now stands at over $171 million from about $140 million at the end of 2010 and just over $20 million in 2005--that's about 2.3x the firm's annual revenue run-rate and over 8x its market cap, revealing nice visibility.
EDAC is profitable and has negligible exposure to raw material cost fluctuations (it has a dollar-for-dollar passthrough to customers). Plus, the firm's first-quarter performance showed improvement over last year, and management indicated on the call that its order pipeline remains active. With daily dollar volume at just $44,000, institutional investors will not be too active in this firm's stock, and retail investors should view EDAC's equity as an interesting call option on future aerospace demand. EDAC could reach its previous highs of $6 per share during the coming upswing, offering 50% upside from today's levels.
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| Posted: 16 Jun 2011 13:56 Back to top |
Guest
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Very interesting. I've already made a killing on this stock call so far. Up over 15%! Nice.
Should I take my profits off the table now or hold on still. I know you mentioned it could go to $6 per share, but seeing it rise from $4 to $5, I'm ready to take some money off the table.
Thanks Valuentum Team!
Sam
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| Posted: 09 Jul 2011 10:37 Back to top |
Guest
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Well over $6 now. Wow that was an easy trade.
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| Posted: 04 Aug 2011 17:33 Back to top |
Guest
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This call has been fantastic. Well worth the $5/month annual membership. In fact, the EDAC stock price doubling has paid for a lifetime subscription to Valuentum and much more. Keep up the great work.
Chris
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| Posted: 05 Sep 2011 22:32 Back to top |
| Posted: 29 Sep 2011 03:28 Back to top |
Guest
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I've made a killing in this stock, thanks.
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| Posted: 29 Nov 2011 13:37 Back to top |
Guest
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I really can't believe this. EDAC is almost a triple now! Thanks Valuentum, not only for the idea, but also showing that letting big winners run is not a bad strategy, as long as its valuation still supports the hold.
It's not surprising to see your newsletter doing well.
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| Posted: 29 Dec 2011 15:08 Back to top |
Guest
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Now it is more than a triple. Could this turn into a four-bagger?
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| Posted: 14 Mar 2012 19:49 Back to top |
Tobias Kohls
Posts:2
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Hi Valuentum Team,
what are your expectations for the upcoming Q3 results? Would you still recommend investing new money in the name?
Thanks
Tobias
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| Posted: 23 Oct 2012 04:46 Back to top |
Valuentum Team
Posts:43
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Hi Tobias,
We don't respond directly in our message boards regarding stocks, but you have access to our analyst team by emailing analysts@valuentum.com. And our up-to-date research is always available on our website.
Thank you for your membership.
Kind regards,
The Valuentum Team
www.valuentum.com
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| Posted: 01 Dec 2012 14:42 Back to top |
Guest
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Hi Valuentum Team,
I just wanted to say that EDAC Tech was a fantastic call, having been bought out at $17.75 per share. It seems like the message boards aren't that well visited by outsiders. A good thing for us individual investors.
When will you be posting another free-bie on the message boards? I can't wait!
Thank you!
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| Posted: 25 May 2013 12:40 Back to top |
