Tuesday, July 31, 2007

Astro-Med Inc.

Astro-Med Inc. is a NASDAQ listed security that has been trading in a range between $8.66 and $12.12 over the past year. With 6,905,270 shares outstanding, a recent price of $9.97 gives a total market capitalization of $68,845,544. While there are certainly larger companies, Astro-Med Inc. has definitely earned its place in the pack. Last year, Astro-Med Inc. created $0.81 in earnings for every share outstanding.

Astro-Med Inc. is currently priced by the market at 12.30 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, Astro-Med Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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