Ceco Environmental Corp. (NASDAQ:CECO)

WEB NEWS

Wednesday, May 12, 2010

Special Situations

Yesterday we coded Career Education as a GeoSpecial @ $29.73 based on our new valuation gap criterion.

  • 2009 EPS increased 104.2% to $1.96
  • Estimates are strong:
    • 2010: $2.76
    • 2011: $3.37

Short-Term Valuation Scenarios

Price Based on P/E of 25 on Four Quarters Trailing non-GAAP EPS of $1.96 a $49.00
Price Based on P/E of 20 on Four Quarters Trailing non-GAAP EPS of $1.96 a $39.20
Price Based on P/E of 15 on 2010 Analyst EPS Estimates $41.40

a 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 . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.The GeoTeam® non-GAAP figures apply a 25% and 36% tax rate for Chinese and United States companies respectively.

These scenarios are not investment advice, but are scenarios based on some commonly used investment guidelines.  They are provided to aid investors in making their own investment decisions.


Sunday, May 2, 2010

Comments & Business Outlook

“The growth of our student population and strong financial results in 2009 clearly reflected the quality of postsecondary education provided by our institutions and the improvements we continued to make in the effectiveness and efficiency of our operations,” said Gary E. McCullough, President and Chief Executive Officer. “We are excited about the future as our organization is well positioned to achieve the next level of growth.”

During the three months ended December 31, 2009, the company repurchased approximately 800,000 shares of its common stock for approximately $20.0 million at an average price of $26.54 per share.

During 2009, the company repurchased approximately 9.0 million shares of its common stock for approximately $200.0 million at an average price of $22.23 per share. Additionally, in January 2010, the company repurchased approximately 1.7 million shares of its common stock for approximately $40.0 million at an average price of $23.53 per share.

On February 16, 2010, the Board of Directors authorized the use of an additional $250.0 million to repurchase outstanding shares of its common stock under the company’s stock repurchase program. This is in addition to the $155.5 million still available under its previously authorized stock repurchase program. Stock repurchases under this program may be made on the open market or in privately negotiated transactions from time to time, depending on factors including market conditions and corporate and regulatory requirements.

Source: Business Wire (February 17, 2010)