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.

CECO Environmental Corp Reports Earnings

CECO Environmental Corp. (CECE) reported earnings results for the fourth quarter and full year ended December 31, 2007 on March 10, 2008. For the quarter, the company reported net income of $1,818,000 or $0.12 per diluted share on net sales of $67,986,000 compared net income of $1,201,000 or $0.09 per diluted share on net sales of $41,498,000 to for the same period a year ago.

For the year, the company reported net income of $6,305,000 or $0.45 per diluted share on net sales of $235,953,000 compared net income of $3,094,000 or $0.24 per diluted share on net sales of $135,359,000 to for the same period a year ago.

Phillip DeZwirek, chairman and CEO, said in a news release that the company's gross profit margin fell slightly over the year because of a lower margin on a large automotive project.

"We anticipate that both gross and operating margins will increase in the future as the large project is completed and anticipated new higher-margin contracts are completed," he said in the release.

The order backlog at the end of 2007 was $85.5 million, compared to $97.1 million at the end of 2006, the company said in a news release.

DeZwirek figures the market for air pollution-control products has soared from $5 billion a couple of years ago to more than $50 billion now. The heightened attention to the environment is the driving force.

"They've really put together a full-service company that no one can compete against," said Bill Gregozeski, analyst at Capstone Investments in Milwaukee.

With the addition of Fisher-Klosterman, Inc. I think CECO Environmental Corp. (CECE) is still a great buy at these levels and will have a very successful 2008 even with a slowdown in the US economy. This site is all about long term investment after all and with a air-pollution controls market that is growing this fast CECO is certainly in the right spot.

CECO Environmental Makes It's Entrance Into China

CECO Environmental Corp ticker symbol (CECE) has announced that it will buy Fisher-Klosterman, Inc. for 15 million cash and 1 million in CECE stock. This strategic acquisition will not only help improve CECO Environmental's revenues and net income, but will also provide a key 40,000 square foot sales and manufacturing facility in Shanghai, China. This should help CECO display it's already massive product line to those in red hot China.

"We are excited about joining CECO and advancing our shared strategic vision for the company. CECO offers the Fisher-Klosterman companies improved access to capital, a seasoned team of successful senior management, larger- scale marketing resources, internal supply of many related products and services, and expansive relationships with new potential customers," said William Heumann, president of Fisher-Klosterman, Inc.

The acquisition of Fisher-Klosterman is yet another step in the right direction for CECO Environmental. The potential for environmental pollution control in China will become huge. With the world's eyes on China for the upcoming Olympics, China will be forced to clean up it's act. People are already starting to say that the athletes will not be able to perform in such smoggy conditions. China has pasted The United States in terms of Greenhouse Gases as well, so it is only a matter of time before the world starts to put the pressure on them to become more energy efficient and reduce their air pollution. Of course, if you are familiar with CECO's business you know that they can really benefit from these upcoming environmental standards not only in China, but all over the world.

China is a growing industrial hot spot, and the demand for an established air pollution control company like CECO could be huge. Needless to say we here at Stock Picky have been behind CECO for a little while now, and the stock has taken a hit since it was first highlighted it at $13.37. As long as you spread out your buys over time you should be just fine, as is the case with all long term stock picks. Remember, this company is tiny at only a 138 million dollar market cap, so fluctuation like this are not abnormal. Also, take into account that they are reporting earnings on March 10th, 2008 and this could send the stock in either direction over the short term.

For more reasons to own CECO check out my first post here...

Reap The Benefits Of High Energy And Pollution With CECO

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...