IPMN trading less than 4 X EPS with potential growth; could earn $0.40+/share in 11’
21st Century Stocks & Sectors page highlights undiscovered micro-cap companies – typically low-priced companies with market caps of 500 million or less in three key sectors we believe are headed for substantial growth over the next decade: (1) Healthcare; (2) Internet and IT; and (3) energy and environmentally clean technology. Micro-cap companies typically lack Wall Street analyst coverage, and are inefficiently priced and/or often thinly trading the proverbial “tree in the forest.”
We are adding Imperial Petroleum, Inc (IPMN: OTCBB) to our watch list and have added a landing page for Imperial in our website’s Watch List section under Energy category.
Imperial Petroleum, Inc (IPMN: OTCBB)is a multifaceted energy company, operating in renewable energy biofuels, production of oil from the extraction of tar sands, and traditional oil and gas exploration and development.
Imperial’s goal is to become a major player in the green energy biofuels sector through the use of newly developed proprietary technology. The company uses premium white Grease or chicken fat as the feed stock for their conversion plant which has a capacity of approximately 25 million gallons.
IPMN recently announced that it reported net income for the third quarter ended April 30, 2011 of $4.46 million or $0.16/share (fully diluted) on revenues of about $36.5 million, setting a historical record for the Company.
For the nine months ending April 30, 2011 the Company reported net income of $5.66 million or $0.22/share (fully diluted) on revenues of $66.4 million. Revenues for the third quarter increased to approximately $36.5 million from $14.0 due to increased capacity at its Middletown, Indiana plant resulting in increased sales volumes of biofuels.
The Company reported total assets at the end of its 3rd quarter of approximately $20.0 million and has 27.9 million shares issued and outstanding as of the quarter ending April 30, 2011.
IPMN is on track for 100 mil + revenue for the year ended July 31, 2011, and based on it results and guidance, could potentially earn $0.40+/share. If we use a conservative price/earnings ratio of 10 to 20 for current fiscal year ending 7/2011, IPMN could easily see $4 to $8 stock within the next 3-6 months.
There are a couple near term catalyst that could propel the stock substantially higher near term, including the upcoming Rodman & Renshaw conference on September 11-13, year end results, and a potential NASDAQ listing application. IPMN meets all requirement of NASDAQ, with the exception of the required $3 stock price.
Volume appears to be drying up, which could indicate an end to the recent selling. The stock closed on Friday @ $1.32 off 23% from its recent high of $1.71.
We are currently investigating Imperial, and contacting the company about possibly doing an interview and/or presenting to our audience. Our goal is to investigate and discover leading microcap stocks before they make major price advances, and who are currently developing or looking to develop a community of long-term, like-minded investors.
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