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Turbotec Products

Last week I bought into Turbotec Products (LON:TRBO), a US manufacturer of twisted heat transfer pipes that is listed on AIM. It was my first foray into the markets for at least a year.

I like the look of the business, which has been profitable through the recession, and now shows signs of growth. I also liked the price. Using its interim balance sheet, the company has net assets of $11,362,000. Take off $313,000 intangibles and convert the net tangible asset value to sterling (at £0.643227:$1) and you get £7.1m. To get the most conservative value estimate, I divided that figure by the fully diluted number of shares (13,514,554). This gives a company worth at least 53p per share. I bought at 29p.

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