In manager Richard Moore’s Market Comparables model, a long-refined financial model is used to help find companies based on relative price movement and valuations over time. From there, Moore looks at each company’s financial forecast to get an idea of their potential for earnings growth. This month, Moore added several new positions to the model including Innospec Inc (NASDAQ: IOSP), a chemical company that specializes in octane additives and fuel specialties. The company’s net revenues fell from $640.5 million in 2008 to $598.5 million in 2009. So far, during the first three quarters of 2010 the company has reported $505.9 million in net revenues. The company’s stock price has jumped quite a bit this month. On November 1st, IOSP had a closing price of $16.90. On November 29th, its closing price was $21.09.
Another position added to the model this month was wireless service provider USA Mobility Incorporated (NASDAQ: USMO). USMO’s sales have been in decline since 2007, when they were $424.6 million. In 2008 they dropped to $359.4 million then to $289.7 million in 2009. So far in 2010, they’ve reported $195.5 million in sales. With analysts forecasting an estimated $54 million in sales for the fourth quarter of 2010, it seems the company may not meet its 2009 sales numbers. USMO’s stock price has moved quite a bit this month, although its net change hasn’t been substantial. USMO started the month with a closing price of $16.73 on November 1st, then closed higher—at $17.01—on November 29th.
*All prices used in this post obtained from Yahoo! Finance.