North American Galvanizing & Coatings

52-week low / high: $2.94 / $11.97
Shares Outstanding:  12.35 million
Market Capitalization:  $76.47 million

As the name implies, North American Galvanizing & Coatings, Inc. (Nasdaq: NGA) is a service business focused on galvanizing and coatings (immersing prefabricated client components, iron and steel products, in molten zinc).

The company operates through its wholly owned subsidiary North American Galvanizing Company, and Galv-Ohio, Inc., an indirect subsidiary formed from the assets of Gregory Industries, Canton, Ohio.

NAG’s other services include sandblasting, metalizing (flame sprayed), centrifuge spinner galvanizing, Corrocote Classic II painting and INFRASHIELDsm Coating. NAG’s operations encompass 11 plants in seven states from Ohio, Tennessee and Missouri to Texas, Oklahoma, Kentucky and Colorado.

Galvanizing provides corrosion protection to fabricated steel for use in a variety of markets, including petrochemicals, highway and transportation construction, utilities, communications, and a myriad of other applications. The company has over 1,700 customers nationwide.

Revenues for the year ended Dec. 31, 2006, were $74 million, up 54.7% from $47.9 million in 2005.

For the first six months of 2007, net earnings were $4.5 million, or $0.36 per share, versus $2.4 million, or $0.20 per share, for the first six months of 2006. Once again, a decidedly unsexy industry delivers some titillating profit opportunities.

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