WSCI - WSI Industries Inc

By Johns Wu on Apr 10, 2008

WSCI has a float of only 2.6 million shares. There are no covering analysts. There has been no insider selling on the open market since July 2007.

A little about WSCI: WSI Industries, Inc. engages in the precision contract metal machining business in the United States. It offers metal components in medium to high volumes requiring tolerances in accordance with customer specifications. WSI Industries offers its products and services primarily to the aerospace/avionics/defense industries, recreational vehicles markets, and computer components and bioscience industries.

The WSCI chart story:

Very bullish on all fronts. Looks like $11-$12 formed base is the longer-term support. P&F is giving a bullish target of: $23.50

The combination that WSCI is in the extremely hot “metals” sector (look at competitor charts of VMI, SCHN, RS) and the future IBD100 exposure could result in a $16-$17 near-term target. Also the fact that since January 1, 2008 WSCI has climbed from $5 to now over $13 and NO insider has sold any shares is telling us that they think that WSCI has more upside.

Please do your own due diligence before buying any shares of WSCI.

This entry was posted on Thursday, April 10th, 2008 at 5:04 pm and is filed under Fundamental Analysis. You can skip to the end and leave a response. Pinging is currently not allowed.

7 Responses to “WSCI - WSI Industries Inc”

By Alex on April 10th, 2008 at 7:23 pm

Nice find! I think that the real kicker will come if analysts get a hold of this and institutions start buying it up. Big drop today though..anything to worry about?

By Ryan on April 11th, 2008 at 1:43 pm

Very good points about analyst coverage - I did not know that. I have been watching this stock since it broke above $9. It is also a 99/99 IBD stock now that should debut at the top of the IBD 100 list if it breaks above $15. I would look at any pullback to the 9 or 20 day moving averages as possible buys as long as these areas hold.

By Mike on April 11th, 2008 at 1:46 pm

I’ve been following this stock for almost 18 months now and it’s a great company. It wasn’t widely followed for a very long time, because the company didn’t really want to grow and diversify its portfolio. In 2004, the company brought on two new directors and commitment to expand its business. They started small, by winning small sub-contracts in defense, aerospace and medical. In 2006, they started gaining contracts in the energy field and those small contracts have expanded to $19M sales in energy alone for 2009.

The EPS estimates (based on company disclosures) places the 2008 earnings at .50-.60 and 1.00 - 1.10 for 2009. Granted the stock has a low float, but I would expect the company to issue more stock (or split) to get out of micro-cap status, it only has a $35M market cap (2.7M float). It does pay a dividend, currently at .0375/share and has paid every Qtr since July’03.

Last Qtr saw margin increase to 21.7%, an all time best.

Also, Institutional & Mutual Fund Ownership has increased to 7.5%, up from 3.5% the previous Qtr.

By Ryan on April 11th, 2008 at 2:13 pm

Lot of things to like about it, especially if it gets the IBD exposure. Market has to cooperate though I think.

By Brett Goldstein on April 26th, 2008 at 9:37 am

Great Pick Johns…I got in at 12 after I saw this post and sold half on Friday. Do you plan on riding this one ?

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