CTI Industries Corp. (CTIB) AT 5.13
Fundamental: 8
Chart: 8
Jan 15, 2007
CTI Industries Corporation engages in the development, production, marketing, and sale of novelty products, specialty and printed films, and flexible containers. It offers various types of balloons, including metalized balloons, latex balloons, punch balls, and other inflatable toy items. The company offers specialty and printed films and flexible containers for food packaging, specialized consumer uses, and various commercial applications, including extrusion coating, and adhesive laminations.
CTIB is a sympathy play from FFHL's momentum. The float for CTIB is small, about 1.08 million only. The company is growing at a fast pace as well. Here is the summary of the Q3 2006 earning.
- Net sales were $8,603,000, compared to net sales for the third quarter of 2005 of $6,034,000, an increase of 42.6%.
- The Company achieved net income for the quarter of $315,000 compared to a net loss for the same period in 2005 of $(416,000).
- Net income per share for the three months ended September 30, 2006 was $0.15 (basic and diluted), compared to a net loss per share for the three months ended September 30, 2005 of $(0.21) (basic and diluted).
- For the nine month period ended September 30, 2006, net sales were $25,756,000, compared to net sales for the same period in 2005 of $22,710,000, an increase of 13.4%
- For the nine month period, the Company had net income of $741,000, representing earnings per share of $0.36 (basic) and $0.34 (diluted), compared to a net loss of $385,000 for the same period of 2005 which represented a loss per share of $0.20 (basic and diluted).
Assuming the company continues the trend, the 2006 EPS should be about $0.45 EPS. If using the same P/E ratio on CTIB from the current FFHL ratio, CTIB should be trading the in $9 area. Even taking a 20% discount for not being a China stock. CTIB should be at $7.50 which is about 50% higher than the current price.
The chart has a nice set up for going higher. Volume had increased last Friday and broke the 50 MA and the $5 resistance mark. MACD just crossed over the positive region again while RSI is not being overbought. It's almost a classic textbook setup for another uptrend. The short term target is $6.50 with a 3 months target of $7.50. Use a stop loss of $4.70
Fair Disclosure: Hold a long position.