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Buy US 1 Industries Under US$0.55
by
Ian Cooper
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As
part of an elite group of analysts, Ian L. Cooper
writes, researches and edits for some of the leading
financial newsletters of today, including The Red
Zone of Profits, Taipan, The Flying V and his own
The Capitalist Pig, which has already made investors
quick profits in short periods of time.
Some
of his recent gains include a five-day 118% profit
on ViroLogic, 118% in less than five days on SureBeam,
43% on Bluefly, 54% on Amazon.com and 147% on Navidec.
And
just recently, he recommended that investors buy into
16 hot stocks that traded under US$1, under cash or
just looked as if they'd survive the long haul. Three
weeks later, he was 15 for 16 with an average gain
of 96%.
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In the past two weeks, the
price of gasoline has fallen close to five cents per gallon
because of weak demand for oil and the plunging price of
crude oil. It’s already fallen close to 32.2 cents
since September 7, shortly before the terrorist attacks
further slowed the economy. Prices are at their lowest since
1998, and show no sign of rising through the end of the
year.
Even though demand is typically
weak by early November, and uncertainty about the economy
has further depressed the nation’s thirst for oil products,
the ongoing drop in crude oil prices is the main reason
pump prices continue to slide.
But the madness brings some
impressive investment opportunities. With oil prices plunging
lower than bin Laden’s chance for survival, the Flying
V has been keeping a close eye on companies that stand
to benefit from the oil price downturn: oil, transportation
and energy companies.
The
benefits of low oil rates
Take US 1 Industries (USOO:OTC-BB),
for example. It’s an interstate trucking company that
carries all forms of freight by truck, and it stands to
benefit from lower oil rates. As the price of oil drops,
so does the cost of trucking products from one state to
another.
For the past nine quarters,
USOO has grown its revenue at a 10% rate, while EPS has
jumped close to 58% Q-over-Q. Not bad for a company that
trades under US$0.50 and has a market cap of $4.6 million.
Recent acquisitions mean that
USOO should have no problem with growth. The company has
just acquired Transport Leasing Services, Inc., Transport
Logistics LLC, and the operations of ERX, Inc. This could
contribute more than US$8 million to USOO’s year 2002
revenues.
Keep
on truckin’
In
the latest quarter, revenues jumped 37% to US$18.4 million
compared to US$13.4 million in the same period of 2000.
Net income also shot up 10% to US$292,669, compared to US$266,752
in the same period of 2000.
For the last nine months, revenues
increased 51% to US$51.4 million, compared to US$34.1 million
for the same period in 2000. Net income increased 36% to
US$644,458, up from US$472,718. That gives US 1 a P/E
of 2.6–amazing!
Buy US 1 Industries (USOO:OTC-BB)
under US$0.55 (it is currently trading at $0.44) as a collateral
play on falling oil prices. We’re setting a one-year
price target of US$3. Contact: US 1 Industries, 1000 Colfax,
Gary, IN 46406, tel. 219-944-6116, fax 800-377-3715.
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