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Edward J. Roche
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Edward Roche is the President of Freedom Mountain Investments (http://www.freedommount.com/), an investment firm founded in 2006, located in Paoli, Pennsylvania. Freedom Mountain specializes in identifying hidden value in small and mid size companies before they are recognized by the market. The... More
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  • The Turn-around Continues at Ikonics 1 comment
    Aug 7, 2010 2:17 PM | about stocks: IKNX
    I last commented on Ikonics (NASDAQ:IKNX) in March 2008. .  Ikonics is in the business of development and manufacture of light-sensitive liquid coatings and films, and proprietary substrates for abrasive, rotary, and laser etching. One of its key brands is Chromaline used in screen printing applications
    Ikonics is a micro-cap company that has always come up on my value screens. Apparently private investor Joseph R. Nerges also thinks it is excellent value since he has been systematically acquiring shares for a number of years. His most recent purchase of August 3 brings his ownership position to approximately 20%. While the long term strategy of Mr. Nerges remains uncertain, he was successful in his one prior investment of this type (Penobscot Shoe) when the company was taken over at a nice premium. 
    Like most industrial companies IKNX was hit significantly by the recession. But its last two quarterly reports give good evidence for a turn-around in its businesses. IKNX most recent report of July 29 saw revenues up 12%, earnings up 134% vs. a weak Q last year.

    Bill Ulland, IKONICS CEO, said, "I'm pleased to report a continuation of our strong recovery from last year's recession. All segments of the company contributed to these improved quarterly results, with the export business and our new business initiatives being particularly key to the improved financial results.

    "I am optimistic that our new business initiatives will continue to generate sales increases for some time. As demonstrated by the second quarter results, our cost structure allows sales increases to have a very positive impact on profits."
    I continue to hold shares of IKNX in my individual accounts and accounts managed for clients at Freedom Mountain Investments.

    Disclosure: I own shares of IKNX in individual accouns and accounts managed for clients at Freedom Mountain Investments
    Stocks: IKNX
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  • James Duade
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    Thanks for the article. I've been following IKNX for about two years, and have been fascinated with Mr. Nerge's buying. My question is, if he thinks there will be a takeover, who would be the acquire the company? It seems just a bit too small to be on the radar of most companies. Who do you think would pick up IKNX? Thanks again for your article.
    10 Aug 2010, 01:17 PM Reply Like
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