Cpi Aerostructures (NYSE AMEX:CVU)

The GeoTeam listened to the replay of Cpi Aerostructure's (CVU) presentation at the Noble Financial Equity Conference that took place on  January 17, 2012.  Recall that we added the stock to our GeoBargain list at $4.00 per share on February 4, 2009.  Yesterday we mentioned that we added to our position based on this call and believe the company’s growth is about to punch into second gear. The Stock is selling at 8 times 2012 EPS estimates of $1.59. That implies 54% growth and less than 2 times its book value per share of $7.39.  

Key points from the call

• Tremendous long term visibility. 
• 2012 off to a good start. 
• 2011 guidance of revenue of approximately $74 million and net income of $7.4 million to $7.5 million are still intact. Direct quote from presentation:

 “I would not be standing here talking to you if I didn’t think we were going to hit our numbers to be released in the next few weeks."

• 2012 Guidance is still intact. (Implied EPS range of $1.69 to $1.83, which is higher than analyst estimates of $1.59)
  
• 2012 Does not include
  
  
  • contracts the company is still bidding on
  • any uptick to government spending
  • the possible expansion of existing contracts to include add on orders.

July Investor presentation available for Cpi Aerostructures.

Highlights:

1. On track to achieve 2009 guidance
2. Long term visibility
3. $360 million in award solicitations
4. Management expects margins to significantly improve