Tuesday, July 31, 2007

Analysts International Corporation

Analysts International Corporation is a NASDAQ listed security that has been trading in a range between $1.55 and $2.47 over the past year. With 25,135,730 shares outstanding, a recent price of $1.62 gives a total market capitalization of $40,719,883. While there are certainly larger companies, Analysts International Corporation has definitely earned its place in the pack. Last year, Analysts International Corporation created $-0.14 in earnings for every share outstanding.

Analysts International Corporation is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Analysts International Corporation is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.

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