Neo Materials on growth track
Neo Material Technologies Continues Growth in 2006
Neo Material Technologies Inc. (TSX: NEM) a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium based engineered materials and applications, on March 8 announced financial results for its fourth quarter and full year ended Dec. 31, 2006.
The press release notes, “The 2005 annual results include only the period beginning September 1, 2005 to December 31, 2005 for AMR and the entire twelve-month period for Magnequench as a result of the reverse takeover in August 2005.”
For the fourth quarter, sales increased to $44.7 million, with net income of $8.6 million, or $0.11 per share. This compares to sales of $35.2 million and net loss of $3.3 million, or $0.04 per share, in the year-ago quarter.
For the full year 2006, the company had sales totaling $162.6 million and net income of $27.8 million, or $0.35 and $0.33 per share on a basic and diluted basis, respectively. This compares to full year 2005 sales of $98.5 million and a net loss of $5.5 million, or $0.13 per share.
Shares of Neo Materials are up approximately 57% since being added to the Rising Star Stocks portfolio. We maintain our Buy rating and are revising our price target upward to CAD $4.00.
