|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
JULY 18, 2005
Mac-Gray Is Cleaning Up In The Laundry Room  Micro Caps get little respect on Wall Street, so it's no surprise that Mac-Gray (TUC
) -- a little-known Big Board stock in a ho-hum business with a market cap of $120 million -- has no following at all. A top provider of laundry facilities, and manager of them, for institutional housing (apartments, college dorms, military bases, and hotels), Mac-Gray has been building up its business, notes Robert Sullivan of Satuit Capital Micro Cap Fund (SATMX
), which owns shares. Mac-Gray's big revenue producers are long-term contracts to run laundry rooms with coin- or card-operated machines. Revenues have been quite strong, notes Sullivan, so he expects profit margins to expand for more earnings growth. Mac-Gray stock has been on the rise -- from 6.35 a year ago to 9.42 on July 6. Mac-Gray is cheap, says Sullivan, though it is trading at 21 times his 2005 earnings estimate of 45 cents a share on sales of $250 million. Why? It has solid prospects as the dominant player, he says. For 2006, he expects earnings of 54 cents on $280 million, vs. 2004's 36 cents on $182 million. In 12 months, Sullivan sees the stock at 13, or 24 times his 2006 forecast.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2005, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version