Tuesday, November 25, 2008

Argan, Inc. (AGX) has an Eye on the Future with Power Production as its Focus

Argan, Inc., through its Gemma Power Systems subsidiary, is focused on designing and building energy plants. These plants utilize petroleum fuel as well as alterative energy including ethanol, biodiesel and renewable energy sources such as wind and solar power. The company also provides inside premise wiring services to the federal government and manufactures, packages, and distributes premium nutraceutical products.

In recent news, the company announced revenues of $75 million for Q2 2008 versus $53 million for Q2 2007, a 41.3% increase. The company’s Gemma Power Systems subsidiary contributed 94.1% of total revenues and showed significant gains in EBITDA. Argan’s backlog has grown significantly to surpass $500 million and the company anticipates increased revenues as the contracts progress from the engineering and procurement stage to the construction stage of execution.”

According to Yahoo Finance, the company has total cash of $104 million, or $7.76 a share, and total debt of $5.42 million. It is unusual but favorable for a company to be valued this closely to its cash position when it has little debt and increasing revenues. Currently, insiders hold 49.53% of the shares, showing strong confidence from management, directors and others on the “inside”, while institutions hold 29%.

About QualityStocks:

QualityStocks’ Small Cap Stock Newsletter is a free service that collects data from hundreds of Small-Cap online Investment Newsletters into one free Daily Newsletter Report.

Sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net

The Quality Stocks Daily Stock Report http://video.qualitystocks.net

The Quality Stocks Daily Blog http://blog.qualitystocks.net

The Quality Stocks “Ones to Watch” http://Gotstocks.QualityStocks.net

Please see disclaimer on QualityStocks website: http://disclaimer.qualitystocks.net

No comments: