Something exciting has happened and the market still hasn't caught on. For years IWG was stationary - a sleeper. The last 5 quarters, however, revenue is up 47%. IWG has become a growth stock! As it continues to roll out its new products, and given the deals announced in October with Embraer, to supply Bombardier, and Airbus, growth looks to continue. The deal to supply Airbus allows IWG to break into a new market - the VVIP market.
Importantly, IWG is also earning significant operating earnings now which provides it with the cash to invest in new product lines as mentioned in the last quarterly results news release. The company should be well positioned given its cash and debt capacity to make another significant acquisition in 2013. The increasing diversification of its revenue stream should further support what the market pays for earnings. In 2010 IWG acquired a water heating system to add to its traditional water treatment units.
The naming of a new President and CEO should help wake the market up with the next two sets of financial statements to be released in the next 3 months. The annual financial statements should be released in December. It could be clear then that IWG is selling at less than 2 times sustainable annualized operating earnings. The company should also be positioned to make its next acquisition. Given the low market cap of this company new significant growth opportunities could prove very exciting for the stock.
$.25, per share, or higher could be achieved in the next 12 months. It was nice to see the company recently set its options at $.10, per share, despite the low share price.