Free Stock Tips

Hi Everybody,

We have brought you many great short term alerts but rarely do we ever say we have an OTC company that merits being in your portfolio long term.

This company is one of those exceptions.

This company in our opinion is way way undervalued. For some reason the institutions continue to ignore this company but with the fact that this company continues to plug ahead and put up numbers, they will not be able to forever. Once the big boys do start paying attention to this company the stock may never see these prices again. Until then, smart investors will make sure they have a position and continue to add to it if there are dips in price or they are in a position to do so.

Let’s get to the details.

Our alert is for JUHL Wind Inc, (OTCBB- JUHL) and the stock closed Thursday at 68 cents.

JUHL is a Community Based Wind Power development and management company with 21 wind farm projects completed to date.

The reason we are so excited about JUHL is because they came out with their 2011 year end financials just last week.

They are amazing, here are the highlights:
JUHL’s 2011 revenue increased 145% to $15.5 million dollars !!
JUHL’s operating income increased 278% to $7.6 million dollars !!
JUHL’s net income increased 269% to over $3 million dollars !!
JUHL reported year end earnings of 12 cents a share !!

JUHL added $20.7 million dollars of fixed assets to its balance sheet.

JUHL as of 12/31 was sitting on $6 million dollars in cash or short term investments. Thats almost 30 cents a share.

So, when was the last time any of you saw a company sitting on 30 cents a share in cash, did 12 cents a share in earnings, had revenue, operating income, and earnings all increase by triple digits, trading at 68 cents a share????

Our guess would be never.

In case you glossed over it JUHL did 12 cents a share in earnings for 2011 !!

One way to put a value on a stock price is based on it’s earnings.

More established companies all trade at a multiple of earnings. Lets see where other companies trade compared to earnings to gauge what JUHL may do some day.

As of the end of March here are some numbers to compare to.

The Dow Jones Industrials traded at 14 X earnings.
The Dow Transportation traded at 19 X earnings.
The Dow Utility Average traded at 16 X earnings. (this is interesting since JUHL is a utility)
The Russell 2000 traded at 42 X earnings. (smaller growth companies)
The Nasdaq 100 traded at 12 X earnings.

So if these 3000 companies trade between 12 times and 42 times earnings and JUHL did 12 cents a share in earnings let’s do the math.

12 cents a share earnings X 12 times earnings = $1.44
12 cents a share earnings X 42 times earnings = $5.04

JUHL is currently trading at 68 cents.

Anyone see why we’re excited yet??? It would seem to us that JUHL remains extremely undervalued based on the fact that it is trading at 5 times earnings.

It seems that there is much upside ahead.

Get ready to book your profits with JUHL.

As always, do your own research, don’t chase gaps, use limit orders to enter positions, always use stop loss orders to protect your position, and take profits when you are in a position to do so.

Good Trading