Wednesday, August 8, 2007

K-Tron International Inc.

K-Tron International Inc. is a NASDAQ listed security that has been trading in a range between $52.51 and $104.88 over the past year. With 2,678,260 shares outstanding, a recent price of $100.07 gives a total market capitalization of $270,504,260. While there are certainly larger companies, K-Tron International Inc. has definitely earned its place in the pack. Last year, K-Tron International Inc. created $5.46 in earnings for every share outstanding.

K-Tron International Inc. is currently priced by the market at 18.30 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 over $50 a share and earnings per share in excess of $1 a share, K-Tron International Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.