SYPR and market cap?

1997zj said: "SYPR just signed a $400 mill contract with the government which will be paid out over 5 years between SYPR and another company. The market cap for this company is only $134 million. So they will be making more then there worth over the next few year right? they are seeing 12x the average volume. I see this taking off more then $7.14 a share its at now. what do you guys think?"

Rickster said: "I looked at this one fairly hard. This looks like a solid company that has been a little down on its luck, but is aggressively fighting back and making super recent progress. This looks like a smoking good buy to me. The only thing that worries me is that it looks too good. Someone else take a look. I couldnt find anything wrong. Those of you who know me know that is unusual, to say the least. What am I missing?"

Rickster said: "1997, Where did you find the details of the new contract?"

1997zj said: "lemme look I think I emailed them to myself... AMPA, Fla., Mar 28, 2007 (BUSINESS WIRE) -- Sypris Electronics, LLC, a subsidiary of Sypris Solutions, Inc., announced today it has been awarded an Indefinite Delivery Indefinite Quantity (IDIQ) contract from the Department of Defense for its KIV-19M Link Encryptor. This contract is in support of the U.S. Government's Cryptographic Modernization Initiative. The competitive, five-year IDIQ contract is for the products of two vendors, including Sypris Electronics' cryptographically modernized KIV-19M. The contract has a not-to-exceed value of $400 million. found it on market watch...its up .33 after hours. but I mean if this is true that makes what the stocks atleast over 10 a share? would you buy and hold? what would YOU guys do?"

Rickster said: "Book value is something like $11. Price to sales is about .25. This thing is cheap at $10. But I have a feeling that it is going to gap way up in the morning. The news came out late in the day. If it doesnt gap too hard, I would like to buy some and hold it for at least 18 months."

1997zj said: "whats the highest you would but this per share? wont the earnings be huge if they get an additional 40mill a year over 5 years?"

Rickster said: "The earnings may not change much. It depends on the terms of the contract. They may have had to low bid to get the contract. They may even lose money or just break even. But I dont pay much attention to earnings. Earnings are more important to dividend paying stocks. I am more concerned about growth. And this company looks like it is about to grow again after being in a 2 year slump (due to the slump in autos). This is just the kind of company I like best. A good company that is temporarily out of favor. My main concern is that I wish I had some kind of information that wasnt readily available. I dont like buying on common knowledge. It is usually priced in. The saving grace on this one is that it appears to be off the radar screen. Or, at least it was. I will be busy in the morning, so I told my wife to get some at no more than $10, if she can. To me, anything less than $10 is a good deal. Anything over $10 and I will want to think about it."

Rickster said: "One other thing. this stock could be volatile for a while. It could pull back 10 or 20% after the news induced jump. So if you cant take a 20% pull back, dont buy it. I will only be using about 10% of my stock portfolio on this. And I only keep 5 to 10% of my liquid net worth in stocks. So, a 20% pull back isnt going to phase me. But if you break the piggy bank and put it all on this one stock, you better have a strong stomach. Remember, the key to making money in the stock market is risk management."

DaveinJapan said: "Wow...only 5-10%?? Seems on the low side! What else (if I may ask) are you putting your money into? Hopefully not real estate. :p"

1997zj said: "why hasent this thing taken off yet? maybe it wont? how cant it with a 400 mill deal!!"

Rickster said: "[QUOTE=1997zj]why hasent this thing taken off yet? maybe it wont? how cant it with a 400 mill deal!![/QUOTE] Possible reasons. Typical sell the news action. This contract has been in the works for a while. It was alluded to in the last annual report. It may be already priced in. As I said earlier, there is no guarantee that they will make a profit on the contract. As I said earlier, this company is out of favor due to its association with the auto industry. Stock prices are seldom in step with reality. Nonetheless, my wife did pick some up for me at $7.18. So, I am down about 10% at the moment. If I could be guaranteed that everyone of my stock picks would be no more than 10% (or even 20%) off the bottom, I would be a very happy man. Anyone who thinks they should be able to pick the very bottom is in for a lot of frustration and disappointment."

thezster said: "Read the fine print...."

Rickster said: "[QUOTE=DaveinJapan]Wow...only 5-10%?? Seems on the low side! What else (if I may ask) are you putting your money into? Hopefully not real estate. :p[/QUOTE] Not counting my home: Farm land, part of an airport, cash, cash equivalents, commodities, stocks, guns/ammo, airplane."

1997zj said: "Rickster four of the top directors of SYPR just purchased what was it 30k shares."

thezster said: "[QUOTE=1997zj]Rickster four of the top directors of SYPR just purchased what was it 30k shares.[/QUOTE] 1. did they buy them, or was it part of their 2006 bonus, which is usually awarded around the first of the year? 2. If they did, in fact buy them, it averages only 7500 shares each.... hardly a tell tale sign...."

1997zj said: "hmmm... ill do more research"

Rbreb13 said: "They were awards. Doesn't look like any insiders have EVER bought shares on the open market. [url]http://www.secform4.com/insider-trading/864240.htm[/url]"

thezster said: "Thx Dude... nice to see someone has my back...."

Rickster said: "Insider action was one thing I checked before I bought this one. An I liked what I saw. Insiders own 46% of the shares and still want more. Even though the acquisitions are not being made in the open market, they are acquisitions nonetheless. And they are in nice sized quarterly chunks. That tells me these guys are willing to take company stock instead of pay. And that tells me they have confidence in the company. I will be in no hurry to sell this puppy."

Rickster said: "And.... Adding quickly in my head, I count that insiders have taken over 300,000 shares so far this year. Not bad for a stock with a float of only 12 million shares."

Rbreb13 said: "[QUOTE=Rickster]Insider action was one thing I checked before I bought this one. An I liked what I saw. Insiders own 46% of the shares and still want more. Even though the acquisitions are not being made in the open market, they are acquisitions nonetheless. And they are in nice sized quarterly chunks. That tells me these guys are willing to take company stock instead of pay. And that tells me they have confidence in the company. I will be in no hurry to sell this puppy.[/QUOTE]Sorry, my bad. I also should have stated that it appears the insiders have not sold any shares either. Except for 1 small sale about 8 months ago."

1997zj said: "so ya I bought 500 shares a few months ago at 6.15 I was wondering if anyone else went in with me? think it founds its bottom?"

thezster said: "modest dollar gain.. but a pretty good percentage pickup... congrats"

Rickster said: "[QUOTE=1997zj]so ya I bought 500 shares a few months ago at 6.15 I was wondering if anyone else went in with me? think it founds its bottom?[/QUOTE] I'm in it with you buddy. That was a nice find on your part. As for it finding a bottom, well, only time will tell. Buyers have come in at this level in the past. And the stock is super cheap on a price to sales basis. So, I am willing to hold on long enough to find out."

1997zj said: "Rickster look at her go up another 3%!!"

1997zj said: "hmmm sypr up 12% today... any news? Anyone still holding?"

1997zj said: "SYPR back in the 6's! Ill be keeping an eye on her once again. just letting you all know"

1997zj said: "sypr is at a 6 year low. there has been support around $6 before. In the past few months they stated they are expanding their other sectors beside automotive. They also have recently approved a divy. I feel that the company is undervalued and when the US auto market has any sort of positive growth so wont sypr. and does anyone know how I can upload an excel sheet so you can read it in a forum? besides taking a screen shot? Ive done research and have it all in excel but I am to lazy to put it up here... sorry lol"

imandien said: "In researching the company, did you just read different articles you found? I've read a few I found through google, but I wonder if there's another/better way to get information about a company, their earnings, expected performance, etc."

1997zj said: "Down only 1% today to $5.70... Seems all the long term holders are still holding through these aweful red days. people are done selling picking. Picked up 300 in AH. holding long term. however will sell if a rally does happen."