Bought CECE

I bought CECO Environmental Corp (CECE) at $8.65. CECE provides air pollution control products and services in the U.S., Europe, India and Asia.

• On 4/21, CECE announced it received seven new significant orders totaling approximately $5 million. On 3/31, CECE announced it had booked 33 orders, each worth more than $200,000 apiece. CECO said the largest order is valued at more than $2.5 million and was placed by an undisclosed carmaker.
• Phillip DeZwirek, Chairman and Chief Executive Officer, commented, "Fisher-Klosterman's China operation booked a significant order just last week. We are seeing ever increasing quoting activity in China and have already had established CECO customers visit the facility. Now that Fisher- Klosterman is part of CECO, we are in the process of establishing that facility as CECO Filters' manufacturing base in China along the lines of the facility that CECO Filters already has in India."
• The Cincinnati, Ohio-based company's 4Q net income rose to $1.82 million or $0.12 per share from $1.20 million or $0.09 per share in the prior year. Analysts estimated the company to earn $0.15 per share for the quarter. Net sales for the quarter increased 63.8% to $67.99 million from $41.50 million last year. Wall Street analysts expected the company to post revenues of $66.12 million for the quarter. Gross profit grew 39.8% to $11.50 million from $8.22 million in the comparable quarter a year ago. Operating income was $2.78 million, compared to $2.45 million in the same quarter of the prior year.
• For the full year, the company's adjusted net income increased to $7 million or $0.50 per share from $2.30 million or $0.18 per share in the prior year (304% growth). Net income rose to $6.31 million or $0.45 per share from $3.09 million or $0.24 per share in the previous year. Net sales were $235.95 million, up 74.3% from $135.36 million last year.
• The company's backlog as of December 31, 2007 was $85.50 million, compared to $97.10 million as of December 31, 2006.
• On March 24/25, CECE's CEO bought 40k shares. The last time this happened the stock tripled.
• The stock is lightly covered but Capstone Investments gives it a "strong buy" rating with a $12 target.

This is a China/India/U.S. pollution play. CECE has been on an acquisition spree (see p.14 of the slideshow) but the company is paying off debt and is well positioned as the fight against global air pollution gains momentum.