RedChip announced that it has begun covering Alternative Construction Technologies with a “Buy” rating and a 12 month target price of $12.28. They believe the company offers a compelling investment opportunity in the micro-cap general building materials industry. The stock currently has a market cap of less than $46 million, causing RedChip to believe it is undervalued because of the expected near-term revenue growth, compelling advantages of its product compared to competing products, and the large market potential of its product offering.
The second quarterly report of 2007 revealed that revenues increased approximately 155% over the same period last year. Net income also increased dramatically from $1,564,759 to $3,997,773. Earnings per shares increased 200% from ($0.06) for the six months ended June 30, 2006 to $0.06 for the six month ended June 30, 2007. In the release, the company also stated that it anticipates $26 million in revenue for FY08 with a 12-20% margin, which equates to $0.40-$0.44 earrings per shares using the current number of fully diluted shares outstanding.
The Company’s products are used in the construction of high-rise, commercial, industrial, and residential buildings, including affordable housing, high-end elegant homes, modular construction, and many storage structure applications. The main advantages of Alternative Construction’s SIPs include substantially reduced build time, reduction in heating and air conditioning costs of up to 50%, increased protection from natural disasters, and many environmentally friendly and socially responsible components of the materials.
Let us hear your thoughts below:
