Boy we are looking at the exact same levels which is interesting since you are coming from a more nuanced place. fibonacci boy! Here's the thing to rem,ember back in 05 the BIG year for hurricanes this stock doubled TWICE! BUT WHAT's SCARY... it wasn't one jump then another it was one and total retrace and another. So we must be cognizant that this stock is in very weak speculative hands who will likely sell as soon as the first big storm hits shore... then if you believe it will be an active season you would buy it again. The first double now? Well a storm would have to strike THE SOUTH head on... but it will move a buck just (on one being at sea which is guaranteed so Yes somewhere $9.50 $9.60 $9.75 is THE place to own this stock. And DARE I SAY if you want to keep your charts short term you COULD make the argument $9.97 is the pivot and really anything under $10 is a buy and that's why you keep seeing it pop back to $10.
Imperial Industries (IPII)
# IIPI makes building materials such as stucco, plaster and roofing products, as well as gypsum wallboard, roofing and insulation products. The co has said that the repairs of damaged property last year had a "major" favorable effect on demand. It's worth noting that the company is based in Pompano Beach, FL and just about all sales are to southeastern states.
# IPII is profitable and posted revenue growth last year of 31% to $72.3 mln. Also, EPS over the past 3 years has grown from $0.28 in 2003 to $1.02 in 2004 and $1.34 in 2005.
# Applying Q1's EPS growth rate (27%) for the full year, this computes to an EPS of $1.71 for a very reasonable PE of 13.5x. Two years ago, -2005-the stock jumped nearly 100% twice. From early July to early Aug, $16 to $30, & after a pullback, jumped again from $16 to $29 when Katrina came by in late August.
Imperial Industries (IPII)
# IIPI makes building materials such as stucco, plaster and roofing products, as well as gypsum wallboard, roofing and insulation products. The co has said that the repairs of damaged property last year had a "major" favorable effect on demand. It's worth noting that the company is based in Pompano Beach, FL and just about all sales are to southeastern states.
# IPII is profitable and posted revenue growth last year of 31% to $72.3 mln. Also, EPS over the past 3 years has grown from $0.28 in 2003 to $1.02 in 2004 and $1.34 in 2005.
# Applying Q1's EPS growth rate (27%) for the full year, this computes to an EPS of $1.71 for a very reasonable PE of 13.5x. Two years ago, -2005-the stock jumped nearly 100% twice. From early July to early Aug, $16 to $30, & after a pullback, jumped again from $16 to $29 when Katrina came by in late August.
