Micropac Industries: Knobias Spotlights Stock of the Week (MPAD)

Oct.27.05 | About: Micropac Industries, (MPAD)

The Microcap Speculator submits: Knobias' spotlight stock of the week is Micropac Industries (ticker: MPAD.ob). Nice chart. I'll keep this one on my watchlist. Here is what Knobias has to say:

Micropac Industries, Inc. (otcbb: MPAD) manufactures and distributes various types of hybrid microelectronic circuits, solid-state relays, power operational amplifiers and optoelectronic components and assemblies. The Company’s products are used as components in a broad range of military, space and industrial systems, including aircraft instrumentation and navigation systems, power supplies, electronic controls, computers, medical devices and high-temperature products. Through two autonomous operating
divisions (Microcircuits and Optoelectronics), Micropac offers standard (catalog items) and custom product capabilities from three DSCC/ISO 9001 certified facilities.


■ What More Can You Ask For? This little known Texas manufacturer seems to have it all. Revenue growth (+15.8%), earnings growth (+52.7%), expanding gross margins (+40.9%), expanding net margins (+12.2%), growing backlog (+28.6%), solid balance sheet ($10 million book, no debt), industry diversification (33% commercial, 56% military, 11% space), small public float (616,238 shares, 76% held by insiders), long-term uptrend (stock +450% since 2002), and low valuation (trailing P/E=9.8).

■ Growth in All the Right Places: Revenues for the trailing 12-months are +15.8% vs 2004 and +42.2% vs 2003. EPS has increased +52.7% vs 2004 and +300% vs 2003. This widening spread is a result of improving margins. TTM gross margin is +40.9% vs +36.5% in 2004 and +32.0% in 2003. TTM net margin has reached a record +12.2% vs +10.6% in 2004 and +4.9% in 2003. While maintaining diversification, MPAD has shifted sales growth to the “hot sector