It looks too be good to be true. Gencor Industries (NASDAQ:GENC), a heavy equipment manufacturer, reported fourth quarter earnings last month, posting net income of 47 cents per share for fiscal 2012, up from 2 cents in the year prior.
At Friday's close of $7.52, that puts Gencor's price-to-earnings ratio at a reasonable 16. Gross margin expanded 320 basis points year-over-year, while net revenues grew nearly 6 percent. 2012 also saw President Barack Obama sign the Moving Ahead for Progress in the 21st Century Act (known as MAP-21), which resolved a three-year impasse over federal highway spending. MAP-21 was a boon for Gencor, which manufactures asphalt plants and other related machinery; indeed, GENC rose around 10 percent when...
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