CECO Environmental Corporation (stock symbol CECE) is looking like a great long term play on tightening environmental standards and a world that is becoming more polluted with every passing day. They just reported earnings on Monday of 14 cents per share, beating analysis expectations of 12 cents per share. Revenue rose an impressive 73% over last years to $65.3 million which also beat the estimated $58.8 million.
CECO Environmental Corp. has been providing clean air solutions for over 94 years for such companies as Motorola, Exxon, Ford, Dupont, and U. S. Steel. They design, build and install complete systems to improve air quality and meet the government's regulatory requirements of their diverse customer line. CECO is also the exclusive suppler to the U. S. military for destruction of nerve gas. Its filtering systems were engineered into incinerators where several thousand tons of Sarin and VX nerve gas and blister agents have so far been destroyed, along with more than half a million rockets, bombs, mortars and mines.
I believe that as the environmental situation worsens around the world governments will be forced to step in and implement tougher standards on all companies, which will play directly into CECO's hand. This company has also recently paid off almost all of it's debt last quarter due to it's secondary offering. With a strengthening balance sheet and a growing product line CECO looks like it will be in the sweet spot for the next few years. This little known gem is only a 196 million dollar company by market cap with only 14.79 million shares of float out there so it certainly has a lot of room to grow.
Remember though with small companies like this there is big risk, but there is also big rewards. I think this could prove to be one of the best plays on the coming tougher standards that will inevitably be put in place by governments around the world. Don't forget sometimes going green can make you some green!
As I write this CECO is trading at $13.37...
Thursday, November 15, 2007
Reap The Benefits Of High Energy And Pollution With CECO
Posted by 1Green Thumb at 1:39 PM
Labels: CECE, CECO Environmental Corp, Environment, Filters
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