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April 19, 2006 Stock Pick: Streicher Mobile Fueling, Inc. (FUEL)

Stock Price: $3.92

Streicher Mobile Fueling, Inc. is a provider of petroleum product distribution services, transportation logistics and emergency response services to the trucking, construction, utility, energy, chemical, manufacturing and government service industries.

This company services its clients on some of the busiest interstates in the country. They are expanding rapidly and just announced opening a new operating location serving the Port of Savannah, Georgia. This port area is a strategic crossroads for the company's customers traveling the busy I-16 and I-95 corridors into ports and points in north Florida.

For FUEL's fiscal 2005 year, the company generated $135.16 million in revenue and a net loss of just 1.45 million. Revenue has grown over the past four quarters from $33.08 million to $43.52 million to $53.63 million to $67.55 million for the latest quarter. For the first six months of their current fiscal year, their has revenue increased 107% from the same period the year before.

This growth is significant yet FUEL is trading at a market cap of only $39.45 million. Based on the revenue from the first six months of their fiscal year, FUEL is trading at a forward P/S of only 0.16. It's rare to find a company that is growing revenues so fast and yet severely undervalued.

Volume has picked up drastically for FUEL since the end of March and it has been climbing. However, FUEL has not had a major break out yet. We expect it to move above $5.50 in the short-term, but much higher longer term. FUEL is currently at a threshold point. Look for a move above $4.50 then $5.50.

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