Focus Stock of the Month

Once a month we will provide a free analysis of a company from our Amateur Investor Index Top 50 which we feel is a stock to watch.

Our selection for February is INTEST Corporation (INTT).

Fundamentals:

INTT

4Q 98/97 1Q 99/98 2Q 99/98 3Q 99/98

% Increase in Quarterly Sales Growth

-36% -15% +26% +127%

% Increase in Quarterly Earnings Growth

-105% -84% -53% +400%
% Increase in Quarterly Net Profit Margins -10.3% +4.2% +7.7% +12.9%

Earnings Outlook:

Estimates for the next two quarters:   4Q 99/98    1Q 00/99
                                                        E .23/-.06    E .25/.03
                                                          +4833%      +733%

If INTT can meet or exceed its current forecast earnings estimates the next two quarters then it would put together 3 consecutive quarters of strong sales and earnings growth.  Net profit margins have improved for the last 3 quarters and cash flows have remained positive after looking at their last 10-Q.

INTT remains in a strong Industry Group (Semiconductor Equipment) which has a Group Strength of 92.  Other ratings as of 2/5/00 include:

EPS:  44  RS:  95  ACC/DIST:  A,  Shares Outstanding:  6.5M,  Float Shares 3.3M,  Institutional Ownership 33% and  Insider Ownership 62%.   The average daily volume is around 32,000 shares.  Next Earnings Report:  2/24

 

The recent chart of INTT shows that it broke out of a Cup and Handle pattern last November and has remained in a steady up trend for the past few months.  Considering how low the float is, if this stock gets noticed it will likely rise very quickly.

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