Saturday, July 21, 2007

Natural Gas Services Group Inc.

Natural Gas Services Group Inc. is an AMEX listed security that has been trading in a range between $11.15 and $19.90 over the past year. With 12,069,170 shares outstanding, a recent price of $17.44 gives a total market capitalization of $210,486,331. While there are certainly larger companies, Natural Gas Services Group Inc. has definitely earned its place in the pack. Last year, Natural Gas Services Group Inc. created $0.71 in earnings for every share outstanding.

Natural Gas Services Group Inc. is currently priced by the market at 24.50 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, Natural Gas Services Group Inc. could be an interesting value proposition.

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