OYOG- OYO Geospace

[cmattporter]

I think this is an interesting company. They deal with gas/oil companies in providing(leasing) seismic instruments. These instruments find the gas/oil underground. Investors will realize OYOG relies on the business cycle of the energy industries.

 

Balance Sheet Highlights

  OYOG current ratio is high. Their cash alone can cover all current liabilities and long term seeing there's none. Asset along with Equity has constant growth. Book value @ 25+, additionally OYOG has kept their goodwill at a 1.85(mil) for more than 5 years.

 

Income Highlights

  EPS for the fiscal year ended almost reaching 5.00, which is considerably higher than last years 2.30. Net profit margin 17%, Sales growth of 38%.

 

I bought OYOG a month ago at 58 1/2, it is now trading at 70. I think the future of the oil industry is positive along with the need for seismic instruments. OYOG deals in Russia, US, Offshore China, Australia, etc. OYOG is in the top tier of seismic instruments providers. Their main competitor is a company who is owned by a conglomerate. The management is value oriented. The competitor filed a lawsuit against OYOG for stealing patents which was rejected by a court decision.

 

The past of this company is stagnant, their recent growth has amazed me and curious to see if it will continue. Let me know what you think or findings in your analysis.

 

Thanks and Good Investing

 

CMP

 

 

[cmattporter]

Up 12% today, my gain is 38% in a month. Anyone think OYOG has substance or just not blue chip enough to comment?

 

[Liberty]

I like what I've seen in the 10k at first glance, but it's a bit too much outside of my circle of competence to comment more than that.

 

Do you see a moat?

[cmattporter]

Not really. OYOG has an average business model/plan, but with a complex product.

[indirect]

There was a write up in Vic 5 yrs or so ago. They do have a moat for optimization of very large deepwater fields.