Friday, May 18, 2007

Good stock for the next 12-18 months

I just listened to the Conference call for CAGC it was a pretty good one. The company also released a press release this morning giving guidance on the 2007 revenue and earnings. They are looking for basically 50% growth in both for 2007. Or earning about .45-.47 for the year. (I think that will be a little low I think .50 is doable.)

If they do earn .50 at 10x PE that is a $5 stock. If they have 15 PE that is a $7.50 stock. I think the company can have an even better 2008. Their tax rate will go down 6-8% which will go to the bottom line. And their factories should be fully up and running and have a good distributor force for them.

I could see a $7-10 stock for CAGC over the next 18 months. It is the type of stock to just buy and hold and forget about. (Put alerts on for different prices but no need to watch it all the time.) A great IRA stock or maybe something for your kids fund if you have one setup.
Not a lot of downside (assuming they can produce what they think) and good upside. A good risk/reward stock but not real exciting should just make money quarter after quarter for a while.

We will probably be in a QUIET period for the next 3 months waiting for the Q2 reports.

Have a good weekend.
If I get all my videos ready I SHOULD have the ebook available sometime mid/late next week. Lord willing.

Steve Hoven

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