Europe Steel EUSP ON PLUS Current mid price 17p 20/12/06
See Plus website for full details of this Steel Broking co, based in London and engaged principally in importing steel from Russia and selling to other parts of the world.
Already some 60% up during 2006, I am nominating this as a doubler in 2007 as;
* Trading statement 8/12/06 revealed profits in 11 months to 30/11/06 "comfortably exceeded" full year results for 2005; they were £582k. Therefore, I believe we can expect £700k ptp for current year.
* Current Market Cap is £2.1M
* So current P/E is 3 !!
* A slow start this year means trading has rapidly and significantly improved in last two quarters, as confirmed by Chairman's statement: 2007 should see profits on again, well over £1M, reducing forward P/E to under 2 !!
* Balance sheet is very strong for such a small cap co; no debt; net cash £1.1M and NCA £1.5M - YOU ARE BUYING HIGHLY PROFITABLE £60m T/O COMPANY FOR VIRTUALLY NOTHING.
* Major shareholder Global Natural Energy (GNE) (39%) sold it's entire holding this week for 20p per share to two investment companies, rumoured to be Russian linked, THUS CLEARING A MASSIVE OVERHANG, since GNE had previously signalled it was to dispose of this non-core investment.
* Available free float still very limited with an Israeli investor (again Russian linked) holding a further 30% and other big holders controlling majority of register.
* An intriguing small cap. play with strong asset backing and the possibility of major expansion plans, with very wealthy and influential shareholders pulling the strings; in the meantime profits are high and set to increase.
