MS International - Double your money in 6 months?

I posted this on my Doublability thread this morning so thought I'd duplicate it here for reference:



Today I'd like to add a further suggestion - MS International MSI. (Don't confuse this with MOS International).

MS International is a small designer and manufacture of specialist engineering products. The Group's principal activities are the design and manufacture of specialist engineering products such as defence equipment, fork arms for the fork lift truck, construction and agricultural equipment industries and the provision of related services.

A bit difficult to find information on but they have a website link:



What really interests me here is that they claim to be "World Leaders in Carbon Fibre Technology". Zoltek's strapline is "Low cost from the beginning... Performance till the end"

Now to my mind the price of steel has rocketed and it must make carbon fibre even more attractive to businesses from a cost effective angle and this I suspect they may be finding a lot of business.

Results rarely give a lot of detail but the numbers do speak a fair bit.

At the interims the eps rose from 1.1p last year to 5p this year.

Earnings have rising on 6 monthly basis from.

H1 2003 = 1.1p
H2 2003 = 3.1p
H1 2004 = 4.8p

That's pretty excellent momentum and would suggest they could well do as much as 6p in H2 making nearly 11p eps for the year - that would be a PE of 7 for this year and over 100% earnings growth.

The fact that there is no broker coverage makes them all the more exciting to ne as they are very under researched. A lot of the small specialist engineering companies are shining out look at WDNY, CFT, AVG - all have seen their share price soar.

It may be that next years earnings from MSI are in the region of 15p if they can maintain this momenum which would put them on a forward PE of 5. If this is the case I see them doubling by August. If they only do 10p next year thay are still on a PE of 7.7, paying a 2.4% yield and fully listed so ISAable. On this basis I think MSI are low risk with potential high reward - 'and commend them to the house' :-)

Recent results say "Order book continues at a 'pleasing level'"

Well worth a look at imo

CR