The Long Case for Kreisler Manufacturing

Jul.23.07 | About: Kreisler Manufacturing (KRSL)

Last quarter Kreisler Manufacturing (OTCPK:KRSL) reported $6.2m in revenues and $308k in net income resulting in $0 .16 in EPS. However, there were one time expenses recognized that would have given them $672k in net income and $0.28 in EPS.

The results from the prior year that the Company will compare to this quarter are $5.8m in revenues and $232k in net income.

So if there are no one timers (that is the biggest risk I see here) and if KRSL can do the same or slightly better than last Q, they have a shot at 200% EPS growth and 10+% rev growth.

Backlog closed last quarter at a record high of 29.7m and should still be strong this quarter, due to a new contract they signed for 2008 (backlog is usually one year out).

So barring any one timers like last quarter, you have a potential 200% EPS gain with a strong forward backlog for a low float stock (approximately 1 million) that is almost $10 off highs and in the hot aerospace sector.

Disclosure: Author is long KRSL