ETB Sales

They come by increasing their sales for some time, but again this year due to its expansion into military products and space. In 2005 these products accounted for only 1% of sales, but until today this part grew more than 50%. In the last quarter showed a growth in its total sales of 45%, which translates into an operating income of 1.3 billion dollars. They are experiencing these new growths but say they are going to implement the same strategy for the next three quarters. Its growth has been constant, why it is not uncommon to assume that this company continue to expand. If we also observe that the company is operating at 7.5 times its operating income. One of the aspects of the company that I didn’t like was the $ 9 million debt, but having an ETB 16 times more large that the interest does not bother me too much.

If the company continues with this policy of increasing sales, seems to me that in the future we are going to be talking of a large company. With high-margin, high-margin sales in constant growth and operating the competitors will have to establish very efficient policies to compete. HWKN (Hawnkins Inc.) It is a company that is immersed in the chemical industry from the year 1938, but has two well marked segments: 1) industry (65% of sales), 2) treatment of water (35%). As many should know, the industrial sector decreased by 23% in the last quarter, but the second sector did not suffer much by recession. He only had a decrease of 5% in its sales. But equally we are dealing with a big company that it is trading 9 times earnings and 10 times on future estimates. They have no debt of any kind which makes this company a true bargain offer. This company pays 2.5 per cent of dividends which does not represent any risk since it represents a small fraction of all earnings that gets the company.