For the Seeking Alpha readers that consider themselves value investors, I suggest you take a look at a microcap company named Perceptron Incorporated, ticker symbol (PRCP).
Perceptron was recently named as one of the 150 "Best and Brightest" innovative leaders for 2011 and a "Company to Watch" by MDB Capital Group, LLC. This recognition is given to those technology leaders ranking in the 90th percentile or above among 1,500 companies with U.S. patents as rated by PatentVest®, MDB's proprietary, intellectual property (IP), business intelligence database. According to MDB, companies on last year's "Best and Brightest" list outperformed the S&P Small Cap 600 Index by 1.4 to 1 and the S&P 500 Index by 2.8 to 1.
To get a better feel for exactly what Perceptron does, the link to it's corporate website is below. Pay close attention to the 'What's New' section at the right of the website. There you will find a description of the company's new patented 3D scanning solution for non-contact measurement. The technology is named Helix, and management refers to it as a Quantum leap in 3D metrology solution.
This technology is currently being beta tested in several major automotive manufacturing facilities in the U.S. and Europe. Expectations are that Helix wil begin to generate revenues in fiscal 2012. While the company is currently focusing on introducing this technology to the automotive industry, it has acknowledged that Helix has the potential to be licensed to other OEM's in a multitude of other industries.
Even without Helix, the fundamentals of the company warrant a serious look by value investors.
Some Highlights are listed below:
- No debt
- $2.50/share in Cash & Short Term Investments
- Price/Sales Ratio < 1
- Price/Book Ratio < 1
- A return to profitability with a 20% Growth in Revenues YoY
- A recently initiated $5,000,000 stock buyback plan
The company has not quantified the revenue potential of Helix, but I have been an investor in this company for more than 10 years and I would classify the current management team as fairly conservative. Whenever I have heard them speak on the potential for of Helix, you cannot help but hear and feel a level of excitement and pride in regards to this new technology.
Perceptron's float is only 8.5 million shares, so it will not take a tremendous amount of new revenues / income from Helix to significantly impact EPS figures. The low float can also offer significant upside volatility to the stock price of PRCP if / when those EPS figures do start to grow. If this technology truly is a quantum leap in 3D metrology, it may inevitably lead to a larger industrial company taking over Perceptron, ideally at a much higher price.
Disclosure: I am long PRCP.