InstantForum.NET v4.1.4SINLetter Investment Forumshttp://forums.sinletter.com/"Asif Suria" asif@sinletter.comThu, 20 Nov 2008 11:50:20 GMT20http://forums.sinletter.com/Topic21-13-1.aspxUnited Capital Corp (<A href="http://finance.yahoo.com/q?s=AFP">AFP</A>) looks like a very interesting company and reminds me of <A href="http://www.sinletter.com/blogComment.aspx?id=59">Marcus</A> (<A href="http://finance.yahoo.com/q?s=MCS">MCS</A>) that I found through a stock screen in 2005. As you mentioned, the balance sheet is very strong and the <A href="http://en.wikipedia.org/wiki/Enterprise_value">Enterprise Value</A>/Earnings (EV/E) is a low 4.4. <P>Just like this quarter's results were higher due to a one time lawsuit settlement gain, the third quarter of 2006 had a large gain due to (I am quoting here from their 10-K) </P><P>[quote]results were favorably impacted by the reversal of $17.3 million in long-term and deferred income tax liabilities related to certain tax matters for which the statue of limitations has expired[/quote]</P><P>Without this one time gain, they would have earned about $13.26 million in 2006, putting their P/E at 19.665 instead of 8.97 displayed on Yahoo Finance. According to the first quarter 2007 results, revenue grew 5.5% and looking back at all of 2006, revenue grew by 8.5%. I would prefer not to pay almost 20 times earnings for single digit growth. </P><P>There is also the risk that the current business cycle may be at a peak and hotels may not have as favorable an atmosphere as they have enjoyed over the last two or three years. The low average daily volume (the stock only traded 900 shares on Friday) and annual revenues of less than $100 million might explain why no analysts follow this company. </P><P>I really don't know the future prospects of this company and the recent purchase of the Radisson Hotel may help boost revenue as well as earnings but I figured I would share my initial thoughts about the company.Sun, 20 May 2007 20:02:11 GMTsinnerManhttp://forums.sinletter.com/Topic21-13-1.aspx"United Capital Corp. and its subsidiaries engage in the investment and management of real estate, operations of hotels, and manufacture and sale of engineered products in the United States." I came up with this stock via one of the screeners. <br><br>The fundamental looks strong. It seems to have almost $15.50 of cash per share, after deducting outstanding debt of 12M. The stock price hovering around $31, this means the effective price of the stock is about $15-16. So, the effective P/E is about 4.5-5. It looks like an asset play with about 42M in rental asset, with return on asset 3.75. Return on Equity is 20.79. In last 10Q, barring a 5.8M one time earning, before-tax earning increased 40% from the previous quarter. Institution-held stocks - 11.6%, insider - 70.33%. <br><br>The problem is that the average volume is very low - which may be because of high percentage of insider-held stock. Another issue is that the stock has increased 43% in the last year.<br><br>I would like to as about your take on this company and the stock? Also, why do you think no analyst covers the stock? <br><br><br>- SambitSat, 19 May 2007 19:17:45 GMTsambitbasu