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L. B. Foster Company (FSTR) at the Foundations of National Economic Development

Investors with long term perspectives will be especially interested in value stocks from the Miscellaneous Fabricated Products Industry. The entire Basic Materials Sector has superior prospects in the current economic climate. Companies in infrastructure construction stand to gain significantly from the stimulus package. Many companies in this sector are from the large capital category, so a stock with market capitalization below $500 million is particularly attractive.

This company has fared surprisingly well during the difficult market conditions that have prevailed in the recent past. Annual sales growth over the past four quarters has been 30.58 against 12.98 for the industry. The Net Profit Margin during this period of expansion has been 21.75 against just 5.84 for the industry. Clearly, the stock has performed better than its direct competitors. The trend extends beyond the last four quarters. Five-year average Return in Investment achieved by management is 20.06 against 7.99 by typical competitors. There is plenty of scope to fund growth once the national economy accelerates. The Total Debt to Equity on Most Recent Quarter basis is just 0.16.

The company has a comprehensive range of products and services for the energy and other utility markets. This includes rail transport systems. The company also has considerable strength as a supplier for the construction industry. Its versatile fabrication know-how has both immediate and long-term business potential. The stock is tantalizingly poised at less than $39 during the first fortnight of March 2008, against a 52-week high of $59.95.

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