Monday, March 31, 2008

CECO Announces 33 New Orders

CECO Environmental Corp ticker symbol (CECE) rose over 9% today as they announced a total of 33 new orders each valued at over $200,000. The largest was in the automotive sector, and was worth more than 2.5 million. The recent addition of Fisher Klosterman even contributed to the orders which is a good sign that the acquisition is going well. If you follow this company closely you could have seen this one coming. Multiple insiders were buying up the stock over the past week and CECO tends to announce orders like this throughout the quarter. These type of announcements tend to make the stock spike since it is a small cap stock at only 126 million in market cap.

Here is what the President and CEO had to say about the orders.

Rick Blum, President and Chief Operating Officer, commented, "As usual, our orders are coming from a wide variety of industries. The largest order, which is in excess of $2.5 million, was received from an automotive company. Another significant order was received from a tire manufacturer. The rest of the business came from the metals, power, electric equipment, ethanol, steel, aluminum, gypsum, refining, and copper smelting industries."

Phillip DeZwirek, Chairman and Chief Executive Officer, commented, "Fisher-Klosterman's China operation booked a significant order just last week. We are seeing ever increasing quoting activity in China and have already had established CECO customers visit the facility. Now that Fisher- Klosterman is part of CECO, we are in the process of establishing that facility as CECO Filters' manufacturing base in China along the lines of the facility that CECO Filters already has in India."

This stock has climbed over 25% in just the past 5 days, so I consider waiting till the dust settles before jumping into this one if you don't have a position already. I still believe this stock has simply been beaten up with the rest of the market and still represents a great value at these prices. Don't forget that it is always a good thing to see insiders putting their money where their mouth is as well... They think it is a bargain, do you?

For all of our articles on CECE click here.

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