| StockTradersPress.com |
| A Corporate
Communications Corp. Publication ---- All Rights Reserved |
| Update
Report |
May
17, 2005 |
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| HOLD |
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| Input/Output Inc (NYSE) IO |
$5.79 |
| 52-week range |
$5.28 - $11.22 |
| Market Cap |
$455.53M |
| Shares Outstanding |
77.68M |
| Book Value |
$3.96 |
| Price/Book |
1.46 |
| Average Daily Vol. |
835K |
| Target Price |
$11.00 |
| Target Percentage |
90% |
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| Input/Output Inc . is a major independent
provider of seismic imaging technology and equipment for land, marine
and seabed application for oil and gas exploration. |
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| The stock of Input Output (IO) has
been both a volatile and disappointing one since our initial recommendation
at $8.73 per share. |
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| The major reasons for this
poor performance can be traced to: |
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• Over the past two quarters,
the company reported small losses due to the slower integration
of the GTX Technologies acquisitions and the delayed closing of
two contracts.
• Due to the past hesitance of the major oil companies
to significantly increase their exploration activities,
the demand for seismic activity has improved less than anticipated.
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During the past month there have been a number of signs
that the environment for seismic activities is improving: |
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• Input/Output is registering
much stronger sales and profits in its GTX Technologies subsidiary.
• The company anticipates receiving a large contract
from China for its oil & gas exploration and development
program.
• Input/Output has recently experienced higher
sales of its System Four System imaging product, which
is a high profit service.
• For 2005 we expect Input/Output to earn $0.40
per share, which compares with the $0.03 per share earned
in 2004.
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We consider Input/Output an extremely undervalued
stock at its current price particularly in view of its strong
finance and improving revenues.
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In view of the current stock price, we
are modestly lowering our target price to $11.00 per share from
the previous $14.00 per share.
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