Thursday, July 19, 2007

Tech/Ops Sevcon Inc.

Tech/Ops Sevcon Inc. is an AMEX listed security that has been trading in a range between $6.01 and $11.30 over the past year. With 3,223,050 shares outstanding, a recent price of $10.25 gives a total market capitalization of $35,775,856. While there are certainly larger companies, Tech/Ops Sevcon Inc. has definitely earned its place in the pack. Last year, Tech/Ops Sevcon Inc. created $0.40 in earnings for every share outstanding.

Tech/Ops Sevcon Inc. is currently priced by the market at 27.80 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, Tech/Ops Sevcon Inc. could be an interesting value proposition.

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