Smith-Midland (OTC BB:SMID)

Added to the GeoSpecial list August, 13, 2009 @ $2.10.

Catalyst: Seemed like the company was on the verge of a an EPS break out

Peak performance: Reached a high of $2.30.
Current road block: Strong EPS performance was an aberration. Choppy quarters will likely always be an issue.
Current Price: $1.36

Removed from the GeoSpecial list.

Smith Midland, involved in the concrete product industry reported significant increase in second quarter EPS. EPS increased 275% to $0.15, while revenue  increased 10%. This follows the second consecutive quarter of significant top and bottom line growth. The GeoTeam has monitored this Smith Midland for several years, but felt the company lacked consistency in growth. We are attempting to ascertain how the Company has been able to post solid growth during a weakened economy. Comments from the second quarter press release indicate that the U.S. stimulus package will benefit Smith Midland in the near future. A final investment conclusion can not be made until management is interviewed  However, with a PE of 5, a price of $1.85 and two solid quarters of growth a small investment in SMID may offer a favorable risk reward tradeoff. The GeoTeam may attempt to take a position in SMID in Thursday's (Aug 13, 2009) trading session.

Valuation Scenarios

Added to GeoSpecial on list on August, 13, 2009. ($2.10). 

Data Inputs:

Fiscal Year Ends in December

Date	08/13/09
Price (Current)	$2.10
12 Months Trailing EPS	$.39
Most Recent Quarter EPS Growth Rate	275.0%
Trailing P/E Ratio a,b	5.4
PEG Ratio (P/E divided by growth rate)	0.02

Short-Term Valuation Scenarios

Date	08/13/09
Price Based on P/E of 25 on Four Quarters Trailing EPS	$9.75
Price Based on P/E of 20 on Four Quarters Trailing EPS	$7.80
Price Based on P/E of 15 on Four Quarters Trailing EPS	$5.85
Price Based on P/E of 10 on Four Quarters Trailing EPS	$3.90

Peg Ratio Analysis - Common rule of thumb that PEG ratio should be less than 1.0

PEG Ratio Less than 1?

YES

These scenarios are not investment advice, but are scenarios based on some commonly used investment guidelines.  They are provided to aid investors in making their own investment decisions.