Here is a review of Past research on Merrimac Industries (at the time symbol MRM):
Thursday, December 24, 2009
Thursday, December 17, 2009
GeoBargain Notes
In line with the GeoTeam's constant search for clues related to significant company events, we have uncovered a development that is boosting MRM's stock shares. Yesterday, the company released an 8-K insinuating that the Merrimac is on the sell block. We will monitor this story as it develops.
Friday, August 28, 2009
GeoBargain Notes
GeoNuggets - Quick Check List Highlighting Undiscovered Opportunities
Merrimac Industries Inc. ( NYSE Amex:MRM)
Added to Geo Bargain list on June 30, 2009. ($9.00)
Company Description: Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave signal processing components, subsystem assemblies, and Multi-Mix(R) micro-multifunction modules (MMFM(R)), for the worldwide Defense, Satellite Communications (Satcom), Commercial Wireless and Homeland Security market segments.
Data Ended 8/27/09 (see notes a,b,c)
- Price = $8.05
- Trailing GAAP EPS = $0.89
- Geo Calculated Fully-Taxed Trailing Non-GAAP EPS = $0.68
- Fully-Taxed EPS Estimate = $1.08
- P/E based on Fully-Taxed Trailing Non-GAAP EPS = 11.83
- Geo Calculated PEG Ratio: $0.59
Reasons for Optimism
MRM meets 8 out of 10 GeoBargain Requirements.
Positive outlook
Positive comments in 2nd quarter 2009 conference call.
"We are in pricing negotiations on large pieces of business that we expect to be booking in Q3 and Q4 respectively. If this timing holds up in the third quarter it will set a new quarterly booking record."
"For the year 2009 we expect that the book to bill ratio will exceed 1-to-1. We are pleased with our six months 2009 operating results. We are clearly executing our new strategy well, as reflected in our financial highlights. As mentioned earlier, we anticipate our Q3 bookings will be a record and we also anticipate a strong Q3 operating performance."
Multi-Mix technology is still in its infancy and just beginning to gain industry wide awareness.
Potential Valuation Scenarios if the company can achieve its EPS growth goals
Short-Term Potential value based on fully taxed adjusted trailing EPS
P/E 25 * $0.68 = $17.00
P/E 20 * $0.68 = $13.60
Short-term Potential Value based on GeoTeam Fully-Taxed EPS Estimate
P/E 15 * $1.08 = $16.20
a) MRM is not paying a full U.S. tax rate. Therefore, all EPS numbers have been adjusted by the GeoTeam to reflect a U.S. tax rate of 36%
b) Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information. The GeoTeam � Non-GAAP figures may, from time to time, differ from company supplied figures.
c) Based on GeoTeam implied 2009 revenue growth rate of 20%, as previously stated.
These scenarios are not intended to be investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions.
Tuesday, August 25, 2009
GeoBargain Notes
The GeoTeam is delving further into items in Merrimac 's filings. The net result may result in an $0.08 increase in our trailing non-GAAP earnings per share assumption highlighted in our potential valuation scenarios. For the meantime we will remain conservative in our assumptions.
Friday, August 21, 2009
Conference Call Notes
The GeoTeam participated in Merrimac's 2009 second quarter conference call. The Company reported solid financial results.
Sales increased 8.0% to $8.1 million
GAAP EPS from continuing operations increased to$0.23 from $0.01
Geo calculated Fully-taxed adjusted non-GAAP EPS increased to $0.21 from $0.04
The GeoTeam had two minor concerns going into the call
1. Why the slight sequential decease in 2009 GAAP EPS from the first quarter?
Answer Per Conference Call: "We had certain non-recurring charges in the second quarter that will probably bring us down to a running rate on SG&A about $180,000 (close to $0.06 a share)."
2. Although commentary in the press release was positive, the following comment leaves the door open to a wide degree of interpretation:
First half of fiscal year 2009 was very strong and with new orders meeting or exceeding our internal targets. We are well positioned to finish the second half of 2009 with profitable results."
A more specific outlook would have been ideal
Answer Per Conference Call: We are in pricing negotiations on large pieces of business that we expect to be booking in Q3 and Q4 respectively. If this timing holds up in the third quarter it will set a new quarterly booking record. For the year 2009 we expect that the book to bill ratio will exceed 1-to-1.
We are pleased with our six months 2009 operating results. We are clearly executing our new strategy well, as reflected in our financial highlights. As mentioned earlier, we anticipate our Q3 bookings will be a record and we also anticipate a strong Q3 operating performance.
Investors may start to take notice of Merimac's stock once this commentary filters through to the masses.
The GeoTeam is delving further into items in Merrimac 's filings. The net result may result in an $0.08 increase in our trailing non-GAAP earnings per share assumption highlighted in our potential valuation scenarios. For the meantime we will remain conservative in our assumptions.
