Stock Alert for Wowjoint Holdings Ltd. (BWOW)
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    Stock Alert for Wowjoint Holdings Ltd. (BWOW)

    Wowjoint Holdings Ltd. (BWOW) is a provider of customized heavy duty lifting and carrying machinery used in large scale infrastructure projects such as railway, highway and bridge construction in China. The Company’s main product lines include launching gantries, tyre trolleys, special carriers and marine hoists. Its innovative design capabilities have resulted in patent grants and proprietary products. BWOW is well positioned to benefit directly from China’s rapid infrastructure development by leveraging its extensive operational experience and long-term relationships with established blue chip customers.

    Share Statistics (25-July-11) FY2009 FY2010 % Chg Q12010 Q12011 % Chg
    Symbol BWOW Revenue, $Mn 1.70 24.06 1315.3% 1.73 6.62 282.7%
    Current price $3.51 Gross marg. -262.9% 24.9% -109.5% 16.2% 21.3% 31.5%
    52wk Range: $1.18-$5.40 Oper. margin 2.7% 5.2%
    Avg Vol (3m): 25,284 Net margin -314.1% 1.7% -100.5% -24.3% 4.4% -118.1%
    Market Cap. 27.90M
    Shares Outstanding 7.95M EPS, $ -0.94 0.05 -105.3% -0.07 0.04 -157.1%

    Source: Reuters.com, SEC Filings.

    Recent News

    BWOW saw its shares leap 106% in Friday’s trading, buoyed by news the Company has entered into a new equipment contract for a marine hoist. The agreement calls for Shenzhen Land Investment & Development Center, a government control center, to purchase from BWOW a 50-ton marine hoist, in a deal valued at about $400,000. The marine hoist will be utilized as a yacht hoist in the 2011 Shezhen Universiade. For BWOW, the deal represents the second industry that it has been able to penetrate with its customized marine hoist and is a large market that can lead to future sales.

    “Entering an additional market with our marine hoist demonstrates our focus on diversifying our revenue streams as well as our ability to utilize our core competency of engineering high quality machines that provide a value to our customers,” stated CEO Yabin Liu.  “We believe we will be able capitalize on our entry into this market as well as penetrating the yacht and wind power industries that we entered earlier this year.”

    BWOW shares extended gains on Monday, soaring more than 30% to close at $3.51. About 2.04 million shares traded hands during the session, versus the 10-day average of 144.66K.  BWOW has so far reached a 52-week high of $5.40, its 52-week low being $1.18. It is currently above its 50-day moving average of $1.54 and above its 200-day moving average of $2.20. Market capitalization currently stands at $27.90 million and it has 7.95 million outstanding shares.

    Financial Summary

    BWOW reported revenues of $6.6 million for the first quarter ended March 31, 2011, an increase of 282% from  $1.7 million reported in the first quarter of 2010.

    BWOW’s technical service sales rose 675% year-over-year to $0.6 million. These services, as well as lease revenue, continue to be a focus for the Company as they provide a more stable source of cash flows and a higher margin compared to machinery sales.  International based revenues accounted for approximately 25% of total sales, a substantial increase from 3% of total sales in the comparable quarter last year.

    Net income for the first quarter 2011 came in at $0.3 million, or $0.04 per share based on 7.9 million weighted average shares outstanding.  That compares to a net loss of $0.5 million in the same quarter last year.

    BWOW’s cash and cash equivalents totaled $3.0 million at March 31, 2011, as compared to $2.2 million at December 31, 2010.

    Analyst Consensus

    No analyst recommendations and revisions data available.

    Technical Analysis

    Source: http://stockcharts.com

    On Thursday, BWOW closed above its 20-day moving average. This is generally considered to be an indication of a bullish trend.

    BWOW’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility.

    The MACD for BWOW currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    June13-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Caterpillar Inc. CAT 105.66 68.09B 14.92 11.57 1.20 1.03
    Komatsu Ltd. KMTUY 31.57 30.56B 16.88 12.14 1.35 1.15
    Deere & Company DE 81.89 34.37B 12.86 11.07 1.19 1.08
    Diversified Investments Median       13.50 n/a 5.37 n/a
    Wowjoint Holdings Ltd. BWOW 3.51 27.90M n/a n/a n/a n/a

    Source: Thomson Financial

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