Tuesday, 18 December 2012

IWG - Top Pick Of FRC Analyst

IWG Technologies (TSX-V: IWG)
Basic Shares: 37.6 million
Fully Diluted: 39.7 million

On November 29th, IWG announced record revenues and earnings for its fiscal 2012 (FYE September 30) which subsequently sparked some market interest taking the company's share price to a 52 week high of $0.13.

Fundamental Research Corp's Siddharth Rajeev has been covering IWG for some time now and has recently updated his report dated December 12th rating IWG as a Buy with a Fair Value of $0.40 per share.

Mr. Rajeev has expects 2013 to be another banner year and estimates Earnings Per Share (EPS) to increase to $0.03 from this year’s $0.01.

Highlights of the report include:

• Revenues in FY2012 increased by 36% over FY2011. This is the largest revenue increase in the history of the company.

• The company continues to maintain strong margins with the new product mix.

• The company reported a profit of $0.53 million (EPS: $0.01) for the year.

• IWG’s balance sheet ratios continue to be significantly stronger than the industry averages.

• Improving outlook on the Business and VIP jet aircraft industry.

• Well capitalized to develop and market new products.

• IWG’s shares are up 43% YOY versus negative 21% for the TSX Venture.

• We have raised our EPS forecasts for FY2013 and FY2014. Our fair value increased from  $0.35 to$0.40 per share.

The full Fundamental Research Report can be read by clicking here...