John,
Wow…a potter by profession. Good for you! What a wonderful creative way to make a living. I’m envious.
Your concern about GE is understandable. My guess is that this tiny specialized niche occupied by PFIE is small potatoes to a giant like GE.
PFIE has enjoyed a nice run up this week probably due mostly to an upgrade by The Street Ratings from Hold to Buy.
http://www.thestreet.com/story/12850148/1/profire-energy-inc…
Highlights from the ratings report include:
-PFIE’s very impressive revenue growth greatly exceeded the industry average of 20.8%. Since the same quarter one year prior, revenues leaped by 83.0%. This growth in revenue appears to have trickled down to the company’s bottom line, improving the earnings per share.
-PFIE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.26, which clearly demonstrates the ability to cover short-term cash needs.
-The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Energy Equipment & Services industry and the overall market, PROFIRE ENERGY INC’s return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
-PROFIRE ENERGY INC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, PROFIRE ENERGY INC increased its bottom line by earning $0.12 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus $0.12).
-The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 37.6% when compared to the same quarter one year prior, rising from $1.61 million to $2.22 million.
Jim