Friday, December 06, 2013

AGX Comes Through

AGX, one of my five stocks in my August MFI tranche (and up 42%), reported very solid earnings last night. I had thought very hard about adding a second dollop of AGX in my November tranche, but I was worried about a quarter or two where earnings and revenues might be suppressed as one major project ramped down while a couple of big new ones ramped up.

It was not this quarter! They earned 83 cents a share for the quarter compared with 43 cents a year ago.  The all important backlog of work is 832 million compared with 236 million a year ago. S this goes with my general thesis on construction opportunities increasing in the USA.

Looking at the week (first 4 days), it has been less than impressive.  I am down almost exactly 2%. Not a disaster, but not so hot either (the R3K is down 90 basis points). The sharp drop in GTAT and TCPT has been my problem. Speaking of TCPT, I did add (with my multiplier) 15,000 shares yesterday at 2.19 of TC. The big risk now is that management is hiding something. I think if their financials are reasonably stated, the 2.19 price should work out very well.

Finally, INTC seems on the move back up again.  They had that large drop on November 22nd and looking at early morning trading, they are getting back to within spitting distance of where they were the week before revised guidance.

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