My pick: IEAM.ob
If you believe the CEO (who sounds like a straight shooter to me), the earnings predictions make this way undervalued at 4.00. Here's what he said in the Dec CCs and in the SEC filing that followed:
On Tuesday, December 5, 2006 at 9:00 a.m. Eastern Time, Industrial Enterprises of America, Inc. (the “Company”) held a public conference call to discuss the results of its first quarter. During the call, John D. Mazzuto, the Company’s Chief Executive Officer and interim Chief Financial Officer, disclosed material information that may not have been publicly disclosed in the past.
Mr. Mazzuto projected that the Company could anticipate revenues of $16 million for the second fiscal quarter of 2007, $20 million for the third quarter and over $50 million potentially for the fourth quarter. Additionally, Mr. Mazzuto projected earnings per share of approximately $0.22, $0.33 and $0.50, respectively, for the second, third and fourth quarters of fiscal 2007, before any charges related to derivative securities.
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Those derivative charges can alter reported earnings,but they are non-cash, and not a measure of how the company is doing in operations. These are probably non-taxed eps, but it predicts eps for the FY ending in June 2007 of 1.20+. Their business is seasonal, so don't multiply that .50 times 4, but still this is a very low pe based on the CEO's projections.
And the CEO has done a lot of buying at prices higher than this, so I am inclined to think he means it.
