Why 5N Plus, Inc. Shares Popped Today

What: Shares of 5N Plus (NASDAQOTH: FPLSF  )  rose more than 17% Wednesday after the company released encouraging fourth quarter results.

So what: Though lower commodity prices caused quarterly revenue to fall 7% year over year to $119.4 million, 5N Plus managed to swing to a net profit of $2.1 million. By comparison, 5N Plus turned in a $6.9 million adjusted net loss in the same year-ago period. 

As a result, 5N Plus' full-year 2013 sales totaled $459 million, with earnings of $0.51 per share. Analysts, on average, were looking for significantly lower 2013 earnings of $0.22 per share on sales of $486.92 million.

In addition, 5N Plus was able to decrease its debt by $78.2 million over the last year, leaving just $58.3 million in debt remaining by the end of 2013.

Now what: CEO Jacques L'Ecuyer weighed in: "We ended the year with a relatively strong quarter with EBITDA levels reaching close to $8 million and quarterly revenues at their highest level since the beginning of the year, reflecting a more favorable business environment despite the typical year-end demand softness patterns."

To be sure, even after 5N Plus successfully weathered a tough year, investors might be hesitant to step into the stock now. Even after today's pop, however, I think shares of 5N Plus still reflect much of that pessimism trading at only 0.68 times last year's sales and seven times this year's expected earnings. If 5N Plus can manage to maintain its current momentum, there's no reason the stock shouldn't continue to reward patient shareholders from here.

Still not satisfied? Here are nine more stocks for your consideration
If 5N Plus' turnaround is still too risky for you, you're in luck!

One of the dirty secrets that few finance professionals will openly admit is that dividend stocks as a group handily outperform their non-dividend-paying brethren. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2856397, ~/Articles/ArticleHandler.aspx, 8/21/2014 1:07:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement