Thursday, July 19, 2007

Universal Power Group Inc.

Universal Power Group Inc. is an AMEX listed security that has been trading in a range between $3.96 and $7.55 over the past year. With 5,000,000 shares outstanding, a recent price of $4.60 gives a total market capitalization of $23,550,000. While there are certainly larger companies, Universal Power Group Inc. has definitely earned its place in the pack. Last year, Universal Power Group Inc. created $0.06 in earnings for every share outstanding.

Universal Power Group Inc. is currently priced by the market at 73.10 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, Universal Power Group Inc. could be an interesting value proposition.

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