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OYO Geospace Corp. (OYOG)

OYO Geospace Corp. (OYOG) fell on oil’s recent weakness. Trading at 13.4-times trailing earnings, and with [over 25%] revenue growth projected, but slightly lower earnings growth, OYO Geospace is a buy. The company [has a unique] position in the seismic instrument industry. It does everything from design and...

OYO Geospace Corp. (OYOG) fell on oil’s recent weakness. Trading at 13.4-times trailing earnings, and with [over 25%] revenue growth projected, but slightly lower earnings growth, OYO Geospace is a buy. The company [has a unique] position in the seismic instrument industry. It does everything from design and test to build, sell and rent. It is consistently profitable and has a very low share count for its size, two positives that should please investors.

“The stock sold off in August after coming in a bit light on earnings. It delivered $1.44 versus the $1.49 expected, although year-over-year EPS was still up 64% and revenues were up 31%. The recent correction brought OYOG back to its same price of a year ago. At this level, I think shares are a good buy. I am a bit concerned about management’s cautious comments from the last quarter, which were clearly not intended to be a marketing message. But despite this the stock still offers tremendous upside. And I like the conservative management style and huge earnings per share.”

Ian Wyatt, SmallCapInvestor PRO, October 14, 2011

Ian Wyatt is an active investor, a well-regarded investment expert and an Internet entrepreneur. He is the Chief Investment Strategist at Wyatt Investment Research, publisher of Top Stock Insights and plays a leading role in each of the company’s investment newsletters and trading services. Ian founded Business Financial Publishing and Wyatt Investment Research in 2001, publishing investment newsletters for individual investors. Since then, the company has evolved into an Internet content company publishing e-letters, special research reports, newsletters, trading services and financial web sites.