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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